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.

value: 718 points Patriot Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are red, S55 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 wil 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. etermine the selling price per composi te unit. Ratio Selling price per unit Total per composite unit 55.00 85.00 110.00 275.00 340.00 220.00 835.00 Red White etermine the variable costs per composite unit. Ratio Variable cost per unit Total per composite unit 40.00 60.00 80.00 200.00 240.00 160.00 600.00 Red White etermine the break-even point in composite unit. Choose Numerator: otal fixed costs Choose Denominator: Break even units ution margin per unit Break even units 150,000 235.00 638 composite units etermine its break-even point in units and sales dollars of each individual product. Number Number of composite units to break even. Units sales at the Dollar sales at the break-even pointbreak-even point composite Red White