Problem 18-7A Break-even analysis with composite units LO P4 Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $20; white, $35; and blue $65. The per unit variable costs to manufacture and sell these products are red, $12, white, $22, and blue, $50. Their sales mix is reflected in a ratio of 5:4:2 (red:white:blue). Annual fixed costs shared by all three products are $250,000. 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 $6; white, by $12; and blue, by $10. However, the new material requires new equipment, which will increase annual fixed costs by $50,000 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) Answer is not complete. 1. Determine its break-even point in both sales units and sales dollars of each individual product Determine the selling price per composite unit Ratio Selling price per unit Total per composite unit | Red 5 $ 20.00 $ 100 00 4 M NEX 12 of 12