Handy Home sells windows and doors in the ratio of 8:2 (windows:doors).
The selling price of each window is $200 and of each door is $500.
The variable cost of a window is $125 and of a door is $350.
Fixed costs are $900,000.
Required:
Based on this information, determine:
a) selling price per composite unit,
b) variable costs per composite unit,
c) break-even point in composite units, and
d) number of units of each product that will be sold at the break-even point.
