Question

Handy Home sells window and doors in the ratio of 8:2 (windows:doors). The selling price of...

Handy Home sells window 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:

1. Compute the number of units of each product that will be sold at the Break-even point.

2. Compute the number of units of each product that need to be sold to achieve a net income of $180,000.

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