Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $57; white, $87; and blue, $112. The per unit variable costs to manufacture and sell these products are red, $42; white, $62; and blue, $82. Their sales mix is reflected in a ratio of 4:5:2 (red:white:blue). Annual fixed costs shared by all three products are $152,000. 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 $12; white, by $22; and blue, by $12. However, the new material requires new equipment, which will increase annual fixed costs by $22,000.

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. (Round composite units up to next whole number.)

2. Assume if the company uses the new material, determine its new break-even point in both sales units and sales dollars of each individual product. (Round composite units up to next whole number.)

dlu gels three products: red, white, and blue. Thelr unit selling prices are red uutdiEs a In a ratio of 4:52 (redtwhiteblue). Annual fixed costs shared by all three products are $152000. One ty used to manufacture all three products. The company has developed a new matertal of equal quality fo would reduce variable costs per unlt as follows: red, by $12 white, by $22 and blue by $12 However, t equipment which will Increase annual fioxed costs by $22000 1 Assume ff the company continues to use the old material, determine Its break-even point in both sales each individual product. (Round composite units up to next whole number) 1. Determine its break-even point in both sales units and sales dollars of each individual product ine the selli Ratio Selling price per unit Total per composite unit Red White Blue the variable costs per site unit Ratio Variable cost per unit Total per composite unit Red White Blue Determine the break-even point irn Choose Numerator Choose Denominator: Break Even Units Break even units ine its break-even point in units and sales dollars of each individual product Number per Namber of composite units to Units ssles at the Dollar sales at the reak-even poinbreak-even point bresk even composite Red Prev here to search 2 Assume If the company uses the new material, determine Ilts new break-even point In both sales un Individual product. (Round composite units up to next whole number) 2. Determine its break-even point in both sales units and sales dollars of each individual product the selling price Ratio per Selling price per unit Total per composite unit Red White Blue Determine the variable costs per composite unit Ratio Variabie cost per unit Total per composite unit Red White Blue Determine the break-even point in composite units Choose Numerator Break Even Units Break even units Determine its break-even point in units and sales doilars of each l product perNumber of composite units to composite Units sa es at the Dollar sales at the break-even poi break-even por break even Red Biue Pre Type here to search