Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $$261,000$ per year. Additional data follow.

Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $$261,000$ per year. Additional

data follow.

The company is considering buying new equipment that would increase total fixed costs by $$50,300$ per year and reduce the variable

costs of each type of flag by $$1$ per unit.

Required:

Compute the weighted$-$average contribution margin without the new equipment.

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.

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.

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.Small Large

Sales price per unit $ $25$ $ $35$

Variable costs per unit $ $16$ $ $21$

Sales mix percent $80\%20\%$

The company is considering buying new equipment that would increase total fixed costs by $$50,300$ per year and reduce the variable costs of each type of flag by $$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.