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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
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
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