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Exercise 5-22(Algo) CVP analysis with two products LO P3 Handy Home sells windows...

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Accounting

Exercise 5-22(Algo) CVP analysis with two products LO P3
Handy Home sells windows (70% of sales) and doors (30% of sales). The selling price of each window is $230 and of each door is
$560. The variable cost of each window is $140 and of each door is $380. Fixed costs are
(1) Compute the weighted-average contribution margin.
Weighted-average contribution margin
(2) Compute the break-even point in units using the weighted-average contribution margin.
(3) Compute the number of units of each product that will be sold at the break-even point.
units
units
image

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