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Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $295,000 per year. Additional data follow. Sales
Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $295,000 per year. Additional data follow. Sales price per unit Small 4 26 Large Variable costs per unit $17 $ 36 $22 80% 20% Sales mix percent The company is considering buying new equipment that would increase total fixed costs by $50,400 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-everage contution margin Required 2 > your wers 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 par units for each product. Break-even point in units Break-even point - Small Break-even point - Large < 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 numbe for each product. Break-even point in units Break-even point - Small Break-even point - Large
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