Question: Refer to the information from Exercise. Use the information to determine the
(1) weighted average contribution margin,
(2) break-even point in units, and
(3) number of units of each product that will be sold at the break-even point.
Exercise: Home Builders sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $100 and of each door is $250. The variable cost of a window is $62.50 and of a door is $175. Fixed costs are $450,000. Use this information to determine the
(1) selling price per composite unit,
(2) variable costs per composite unit,
(3) break-even point in composite units, and
(4) number of units of each product that will be sold at the break-even point.