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0.00 points Problem 21-7A Break-even analysis with composlite unlts LO P4 Patriot Co. manufactures and sells three products: red, white, and blue. Their unit sales
0.00 points Problem 21-7A Break-even analysis with composlite unlts LO P4 Patriot Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are red, $55, white, $85, and blue, $110. The per unit variable costs to manufacture and sell these products are red, $40, white, $60, and blue, $80. Their sales mix is reflected in a ratio of 5.4:2 (red white:blue) Annual fixed costs shared by all three products are $150,000. One type of raw material has been used to manufacture all three products. The company has developed a new material of equal quality for less cost. The new material would reduce variable costs per unit as follows: red, by $10, white, by $20, and blue, by $10. However, the new material requires new equipment, which will increase annual fixed costs by $20,000. Required: 1. Assume if the company continues to use the old material, determine its break-even point in both sales units and sales dollars of each individual product 1. Determine its break-even point in both sales units and sales dollars of each individual product te unit. Selling price per unit the selling price per c Ratio Total per composite unit Red White Blue 2 Determine the variable costs per composite unit. Ratio Variable cost per unit Total per composite unit Red White Blue SAMSU
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