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Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $279,000 per year. Additional data follow. Sales price

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Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $279,000 per year. Additional data follow. Sales price per unit Variable costs per unit Sales mix percent Small $ 21 $ 13 80% Large $ 38 $ 20 20% The company is considering buying new equipment that would increase total fixed costs by $51,000 per year and reduce the variable costs of each type of flag by $1 per unit. Required: 1. Compute the weighted average contribution margin without the new equipment. 2. Assume the new equipment is not purchased. Determine the break-even point in total sales units and the break-even point in units for each product. 3. Assume the new equipment is purchased. Compute the break-even point in total sales units and the number of units to sell for each product. Required 1 Required 2 Required 3 Compute the weighted average contribution margin without the new equipment. Weighted average contribution margin Assume the new equipment is not purchased. Determine the break-even point in total sales units and the break-even point in units for each product. Break-even point in units Break-even point - Small Break-even point - Large Assume the new equipment is purchased. Compute the break-even point in total sales units and the number of units to sell for each product. Break-even point in units Break-even point - Small Break-even point - Large

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