ezto.mheducation.com C P Z M Question 10 - Chapter 21 Homework - Connect ework i Saved Help Problem 21-7A (Algo) Break-even analysis with two products
ezto.mheducation.com C P Z M Question 10 - Chapter 21 Homework - Connect ework i Saved Help Problem 21-7A (Algo) Break-even analysis with two products LO P3 Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $291,000 per year. Additional data follow. Small Large Sales price per unit $ 27 $ 37 Variable costs per unit 13 $ 18 Sales mix percent 80% 20% The company is considering buying new equipment that would increase total fixed costs by $49,000 per year and reduce the variable costs of each type of flag by $1 per unit. Required: 1. Compute the weighted-average contribution margin without the new equipment. 2. Assume the new equipment is not purchased. Determine the break-even point in total sales units and the break-even point in units for each product. 3. Assume the new equipment is purchased. Compute the break-even point in total sales units and the number of units to sell for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the new equipment is not purchased. Determine the break-even point in total sales units and the break-even point in units for each product. Break-even point in units Break-even point - Small flags Break-even point - Large flags
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