Question

Ch 05 Ex 5-22 A Saved Help Save & Exit Submit Check my work Handy Home sells windows and doors in the ratio of 7.3 (Windows doors). The selling price of each window is $103 and of each door is $253. The variable cost of a window is $64.00 and of a door is $176.50. Fixed costs are $577,875. (Enter your "per unit" values in two decimal places.) points Selling Price per unit Total per composite unit (1) Determine the selling price per composite unit. Quantity Windows Doors eBook Hint Ask Print Variable costs per unit Total per composite unit References (2) Determine the variable costs per composite unit. Quantity Windows Doors Contribution margin per composite unit Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: Break Even Units Break even units

Answer 1

Correct Answer:

Requirement 1:

Selling price per composite unit
	Quantity	Selling price per unit	Total per composite unit
Windows	7	$ 103.00	$     721.00
Doors	3	$ 253.00	$     759.00
Selling price per composite unit			$ 1,480.00

Requirement 2:

Variable cost per composite unit
	Quantity	Variable cost per unit	Total per composite unit
Windows	7	$     64.00	$     448.00
Doors	3	$ 176.50	$     529.50
Variable cost per composite unit			$     977.50

Contribution margin per composite unit
A] Selling price per composite unit	$ 1,480.00
B] Variable cost per composite unit	$     977.50
C= A-B] Contribution margin per composite unit	$     502.50

Requirement 3:

Break-even point in composite units
Fixed cost	$ 577,875.00
Contribution margin per composite unit	$          502.50
C = A/B) Break-even point in composite units	1,150.00

Requirement 4:

	quantity	Number of composite units to break even	units sales at break even
Windows	7	1150.00	8050.00
Doors	3	1150.00	3450.00
Total			11500.00

End of answer.

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