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C E Chegg Study | GuidedConnect .> C Secure | https://newconnect.mheducation.com/flow/connect.html Ch 05 Ex 5-22 Saved Help Save& Exit Submit my work Exercise 5-22 CVP analysis using composite units LO P4 13 points Handy Home sells windows and doors in the ratio of 7:3 (windows:doors). The selling price of each window is $119 and of each door is $269. The variable cost of a window is $72.00 and of a door is $184.50. Fixed costs are $320,375. (Enter your "per unit" values in two decimal places.) eBook QuantitySelling Price per unit Total per composite unit Hint Windows Doors Determine the variable costs Quantity Variable costs per unit Total per composite unit Windows Doors Contribution margin per composite unit Contribution margin Pre of1 Next Graw O Type here to search 9:16 PM 4/26/2018

Explanation / Answer

1 Quantity Selling Price per unit Total per composite unit Windows 7 119 833 Doors 3 269 807 1640 2 Quantity Variable costs per unit Total per composite unit Windows 7 72 504 Doors 3 184.5 553.5 1057.5 Sales 1640 Less: Variable costs 1057.5 Contribution margin 582.5 3 Total fixed costs/Contribution margin per unit = Break even units 320375/582.5= 550 composite units 4 Quantity Number of composite units to break even. Unit sales at break­even point Windows 7 550 3850 Windows Doors 3 550 1650 Doors 5500 Total

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