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Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $251,000 per year. Additional data follow Sales
Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $251,000 per year. Additional data follow Sales price per wit Variable costs per unit Sales al port Small $23 $14 Large 5:33 5.19 200 The company is considering buying new equipment that would increase total fixed costs by $57.000 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 Complete this question by entering your answers in the tabs below.
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