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CVP analysis using weighted-average contribution margin

CVP analysis using composite units

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.

Using the information from above, 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.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M9410386

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