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IV. CVP analysis using composite units Home Bu...

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IV. 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. Use this information to determine the (1) Selling price per composite unit, (2) Variable costs per composite unit, (3) Break-even point in composite units, and (4) Number of units of each product that will be sold at the break-even point.

 

Paper#6187 | Written in 18-Jul-2015

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