Question
Problem 21-7A (Algo) Break-even analysis with two products LO P3 Patriot Company manufactures flags in two sizes, small and large. The company has total
Problem 21-7A (Algo) Break-even analysis with two products LO P3 Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $299,000 per year Additional data follow Sales price per unit Variable costs per unit Sales mix percent Seall 5.26 Large $ 37 514 $ 20 80% 20% The company is considering buying new equipment that would increase total fixed costs by $51,000 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. Required 1 Required 2 Required 3 Compute the weighted-average contribution margin without the new equipment. Weighted-average contribution margin
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