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please answer this question thnansks Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $59; white, $89;
please answer this question thnansks
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $59; white, $89; and blue, $114. The per unit variable costs to manufacture and sell these products are red, $44; white, $64; and blue, $83. Their sales mix is reflected in a ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by all three products are $154,000. One type of raw material has been used to manufacture all three products. The company has developed a new material of equal quality for less cost. The new material would reduce variable costs per unit as follows: red, by $14; white, by $24; and blue, by $18. However, the new material requires new equipment, which will increase annual fixed costs by $24,000 Required: 1. Assume if the company continues to use the old material, determine its break-even point in both sales units and sales dollars of each individual product. (Round composite units up to next whole number.) 1. Determine its break-even point in both sales units and sales dollars of each individual product Determine the selling price per composite unit. Total per composite unit Ratio Selling price per unit Red 2 $ 59.00 118.00 178.00 White 2 89.00 Blue 1 114.00 114.00 410.00 Determine the variable costs per composite unit. Ratio Variable cost per unit Total per composite unit Red 2 $ 44.00 88.00 White 2 64.00 128.00 Blue 1 83.00 83.00 299.00 Determine the break-even point in composite unit. Break Even Units Choose Numerator: Choose Denominator: Total fixed costs Contribution margin per unit Break even units 1,388 composite units $ 154,000 111.00 Determine its break-even point in units and sales dollars of each individual product. Number Number of composite units to break even Units sales at the Dollar sales at the per composite unit break-even point break-even point Red 2 1,388 White 2 1,388 Blue 1 1,388 Il 2. Assume if the company uses the new material, determine its new break-even point in both sales units and sales dollars of each individual product. (Round composite units up to next whole number.) | 2. Determine its break-even point in both sales units and sales dollars of each individual product Determine the selling price per composite unit. Ratio Total per composite unit Selling price per unit Red 2 White 2 Blue 1 Determine the variable costs per composite unit. Ratio Total per composite unit Variable cost per unit Red White Blue Determine the break-even point in composite units. Choose Denominator: Choose Numerator: / Break Even Units Break even units 0 Determine its break-even point in units and sales dollars of each individual product. Number Number of composite units to break even Units sales at the Dollar sales at the break-even point per composite unit break-even point Red White BlueStep by Step Solution
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