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Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red S65; white, S95; and blue, S120. The per
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red S65; white, S95; and blue, S120. The per unit variable costs to manufacture and sell these products are red, $50; white, $70; and blue, $90. Their sales mix is reflected in a ratio of2:2:1 (red:white:blue). Annual fixed costs shared by all three products are S160,000. 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 S7; white, by S17; and blue, by 57. However, the new material requires new equipment, which will increase annual fixed costs by $30,000 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. etermine the selling price per composite unit. Selling price per unit Ratio Total per composite unit Red 2 White 2 Blue 11 etermine the variable costs per composite unit. Variable cost per unit Ratio Total per composite unit Red White etermine the break-even point in composite unit. Choose Numerator: Choose Denominator: Break Even Units Total fixed costs Contribution margin per unit Break even units etermine its break-even point in units and sales dollars of each individual product. Numbe Units sales at the Dollar sales at the per Number of composite units to composite break even break-even point break-even point unit White Blue
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