Answer:
Results are below.
Explanation:
<u>First, we need to calculate the sales proportion:</u>
Windows= 8/10= 0.8
Doors= 2/10= 0.2
<u>Now, the selling and unitary variable cost per composite unit:</u>
Selling price= 106*0.8 + 256*0.2= $136
Unitary varaible price= 65.5*0.8 + 178*0.2= $88
<u>The break-even point:</u>
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 624,000 / (136 - 88)
Break-even point (units)= 13,000
<u>Finally, the number of units for each product:</u>
Windows= 13,000*0.8= 10,400
Doors= 13,000*0.2= 2,600