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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 Small Large
Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $264,000 per year. Additional data follow Small Large Sales price per unit $ 23 $38 Variable conta per unit $ 14 519 Sales mix percent BON 200 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 Compute the weighted-average contribution margin without the new equipment. Weighted average contribution margin 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 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 - Smal Break-even point-Large
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