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Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $264,000 per year. Additional data follow. Sales price
Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $264,000 per year. Additional data follow. Sales price per unit Small $ 23 Large $ 38 Variable costs per unit $ 14 $ 19 Sales mix percent 80% 20% The company is considering buying new equipment that would increase total fixed costs by $55,800 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 Compute the weighted-average contribution margin without the new equipment. Weighted-average contribution margin Required 1 Required 2 > Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $264,000 per year. Additional data follow. Sales price per unit Small $ 23 Large $ 38 Variable costs per unit Sales mix percent $ 14 80% $ 19 201 S The company is considering buying new equipment that would increase total fixed costs by $55,800 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-even point in units for each product. Break-even point in units Break-even point - Small Break-even point - Large < Prev 6 of 8 Next > Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $264,000 per year. Additional data follow. Sales price per unit Variable costs per unit Small $ 23 $ 14 $ Sales mix percent 80% Large 38 $ 19 20% ces The company is considering buying new equipment that would increase total fixed costs by $55,800 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 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 < Required 2 Required 3> < Prev 6 of 8 Next >
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