S 2. Assume the new equipment is not purchased. V Determine the break-even point in total sales units C 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.price per unit. Its fixed costs for the year are expected to be Patriot Co. manufactures flags in two sizes, small and large. $270,000. Variable costs for the year are expected to be $140 The company has total fixed costs of $240,000 per year. per unit. Additional data follow. Required Small Large 1. Estimate Product XT's break-even point in terms of Sales price per unit. ..... $20 $30 Variable costs per unit . . . $13 $18 (a) sales units and (b) sales dollars. Sales mix percent. ...... 80% 20% 2. Prepare a contribution margin income statement for The company is considering buying new equipment that Product XT at the break-even point. would increase total fixed costs by $48,000 per year and reduce the variable costs of each type of flag by $1 per unit. Check (1a) Break-even sales, 4,500 units Required Problem 18-7A 1. Compute the weighted-average contribution margin without the new equipment. Break-even analysis with two products P3