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Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $259,000 per year. Additional data follow. Sales price
Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $259,000 per year. Additional data follow. Sales price per unit Variable costs per unit Small $ 27 $ 13 Large $ 32 $ 18 Sales mix percent 80% 20% The company is considering buying new equipment that would increase total fixed costs by $50,600 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the new equipment is not purchased. Determine the break-even point in total sales units and the break-ev units for each product. Break-even point in units Break-even point - Small 18,500 18,500 x Break-even point - Large 18,500 X < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the new equipment is purchased. Compute the break-even point in total sales units and the number of uni each product. Break-even point in units 23,815 X Break-even point - Small 23,815 x Break-even point - Large 23,815 x < Required 2 Required 3 >
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