Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $63; white, $93; and blue, $118. The per

image text in transcribed

Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $63; white, $93; and blue, $118. The per unit variable costs to manufacture and sel these products are red, $48; white, $68, and blue, $88. Their sales mix Is reflected in a ratio of 4:5:2 (red:wh te:blue). Annua fixed costs shared by all three products are $158,000. One type of raw materia has been used to manufacture al three products. The company has developed a new material of equal qua ty for less CoS. The new material would reduce varlable costs per unit as follows: red, by $7; white, by $17; and blue, by $11 However, the new material requires new equipment, which will Increase annual fixed costs by $28,000. Required: 1. Assume If the company continues to use the old materlal, 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 price Selling price Total per Red Variable cost Total per Red ChooseI ChooseBreak Even Units 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 price RatioSlling price Total per Red

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Beginners Learn Easy And Fast Accounting Principles

Authors: Dan Wilson

1st Edition

1700199900, 978-1700199904

More Books

Students also viewed these Accounting questions

Question

Define procrastination and explain its causes.

Answered: 1 week ago

Question

Jestion 10 of 15

Answered: 1 week ago