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Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $54; white, $84; and blue, $109. The per
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $54; white, $84; and blue, $109. The per unit variable costs to manufacture and sell these products are red, $39; white, $59; and blue, $79. Their sales mix is reflected in a ratio of 4:5:2 (red:white:blue). Annual fixed costs shared by all three products are $149,000. 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 $11; white, by $21; and blue, by $11. However, the new material requires new equipment, which will increase annual fixed costs by $19,000. 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.) 1. Determine its break-even point in both sales units and sales dollars of each individual product. Determine the selling price per composite unit. Ratio Selling price per unit Total per composite unit Red 4 $ 54.00 $ 216.00 White 5 84.00 420.00 Blue 2 109.00 218.00 $ 854.00 Determine the variable costs per composite unit. Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $54; white, $84; and blue, $109. The per unit variable costs to manufacture and sell these products are red, $39; white, $59; and blue, $79. Their sales mix is reflected in a ratio of 4:5:2 (red:white:blue). Annual fixed costs shared by all three products are $149,000. 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 $11; white, by $21; and blue, by $11. However, the new material requires new equipment, which will increase annual fixed costs by $19,000. 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.) 1. Determine its break-even point in both sales units and sales dollars of each individual product. Determine the selling price per composite unit. Ratio Selling price per unit Total per composite unit Red 4 $ 54.00 $ 216.00 White 5 84.00 420.00 Blue 2 109.00 218.00 $ 854.00 Determine the variable costs per composite unit. Determine the variable costs per composite unit. Ratio Variable cost per unit Total per composite unit Red 4 $ 39.00 $ 156.00 White 5 59.00 295.00 Blue 2 79.00 158.00 $ 609.00 Determine the break-even point in composite unit. Choose Numerator: 1 Choose Denominator: Break Even Units Total fixed costs 1 Contribution margin per unit Break even units $ 149,000 1 $ 245.00 609 composite units Determine its break-even point in units and sales dollars of each individual product. Number per Number of composite units to Units sales at the Dollar sales at the composite break even. break-even point break-even point unit Red 4 2,432 White 5 609 3,045 Blue 2 609 1,218 = 609 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.) 2. Determine its break-even point in both sales units and sales dollars of each individual product. Determine the selling price per composite unit. Ratio Selling price per unit Total per composite unit Red 4 5 White Blue 2 Determine the variable costs per composite unit. Ratio Variable cost per unit Red Total per composite unit White Blue Determine the break-even point in composite units. Choose Numerator: 1 Choose Denominator: Break Even Units / Break even units 0 Determine its break-even point in units and sales dollars of each individual product. Ratio Variable cost per unit Total per composite unit Red White Blue Determine the break-even point in composite units. Choose Numerator: Choose Denominator: Break Even Units Break even units Determine its break-even point in units and sales dollars of each individual product. Number per Number of composite units to Units sales at the composite break even break-even point unit Red White Dollar sales at the break-even point Blue Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $54; white, $84; and blue, $109. The per unit variable costs to manufacture and sell these products are red, $39; white, $59; and blue, $79. Their sales mix is reflected in a ratio of 4:5:2 (red:white:blue). Annual fixed costs shared by all three products are $149,000. 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 $11; white, by $21; and blue, by $11. However, the new material requires new equipment, which will increase annual fixed costs by $19,000. 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.) 1. Determine its break-even point in both sales units and sales dollars of each individual product. Determine the selling price per composite unit. Ratio Selling price per unit Total per composite unit Red 4 $ 54.00 $ 216.00 White 5 84.00 420.00 Blue 2 109.00 218.00 $ 854.00 Determine the variable costs per composite unit. Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $54; white, $84; and blue, $109. The per unit variable costs to manufacture and sell these products are red, $39; white, $59; and blue, $79. Their sales mix is reflected in a ratio of 4:5:2 (red:white:blue). Annual fixed costs shared by all three products are $149,000. 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 $11; white, by $21; and blue, by $11. However, the new material requires new equipment, which will increase annual fixed costs by $19,000. 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.) 1. Determine its break-even point in both sales units and sales dollars of each individual product. Determine the selling price per composite unit. Ratio Selling price per unit Total per composite unit Red 4 $ 54.00 $ 216.00 White 5 84.00 420.00 Blue 2 109.00 218.00 $ 854.00 Determine the variable costs per composite unit. Determine the variable costs per composite unit. Ratio Variable cost per unit Total per composite unit Red 4 $ 39.00 $ 156.00 White 5 59.00 295.00 Blue 2 79.00 158.00 $ 609.00 Determine the break-even point in composite unit. Choose Numerator: 1 Choose Denominator: Break Even Units Total fixed costs 1 Contribution margin per unit Break even units $ 149,000 1 $ 245.00 609 composite units Determine its break-even point in units and sales dollars of each individual product. Number per Number of composite units to Units sales at the Dollar sales at the composite break even. break-even point break-even point unit Red 4 2,432 White 5 609 3,045 Blue 2 609 1,218 = 609 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.) 2. Determine its break-even point in both sales units and sales dollars of each individual product. Determine the selling price per composite unit. Ratio Selling price per unit Total per composite unit Red 4 5 White Blue 2 Determine the variable costs per composite unit. Ratio Variable cost per unit Red Total per composite unit White Blue Determine the break-even point in composite units. Choose Numerator: 1 Choose Denominator: Break Even Units / Break even units 0 Determine its break-even point in units and sales dollars of each individual product. Ratio Variable cost per unit Total per composite unit Red White Blue Determine the break-even point in composite units. Choose Numerator: Choose Denominator: Break Even Units Break even units Determine its break-even point in units and sales dollars of each individual product. Number per Number of composite units to Units sales at the composite break even break-even point unit Red White Dollar sales at the break-even point Blue
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