7 Patriot Company manufactures flags in two sizes, small and large. The company has total fixed...

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7 Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $534,000 per year. Additional data follow. Sales price per unit Variable costa per unit Sales mix percent Small $39 $ 29 BON Large $59 $24 20% The company is considering buying new equipment that would increase total fixed costs by $58,000 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 newl equipment. Weighted-average contribution margin PARKE Required 2 > COL Variable costs per unit Sales mix percent 25 BOX 5:24 201 7 The company is considering buying new equipment that would increase total fixed costs by $58,000 per year and reduce the variable costs of each type of flag by $1 per unit. Break-even point in units Break-even point-Small Break-even point-Large 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 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. < Required 1 Required 3 > Variable conta per unit Sales mix percent #29 ROR Required 1 Required 2 7 The company is considering buying new equipment that would increase total fixed costs by $58,000 per year and reduce the variable costs of each type of flag by $1 per unit. 524 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. Break-even point in units Break-even point - Small Break-even point-Large 201 Complete this question by entering your answers in the tabs below. Required 3 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. < Required 1 Required 3 > 7 Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $534,000 per year. Additional data follow. Sales price per unit Variable costa per unit Sales mix percent Small $39 $ 29 BON Large $59 $24 20% The company is considering buying new equipment that would increase total fixed costs by $58,000 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 newl equipment. Weighted-average contribution margin PARKE Required 2 > COL Variable costs per unit Sales mix percent 25 BOX 5:24 201 7 The company is considering buying new equipment that would increase total fixed costs by $58,000 per year and reduce the variable costs of each type of flag by $1 per unit. Break-even point in units Break-even point-Small Break-even point-Large 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 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. < Required 1 Required 3 > Variable conta per unit Sales mix percent #29 ROR Required 1 Required 2 7 The company is considering buying new equipment that would increase total fixed costs by $58,000 per year and reduce the variable costs of each type of flag by $1 per unit. 524 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. Break-even point in units Break-even point - Small Break-even point-Large 201 Complete this question by entering your answers in the tabs below. Required 3 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. < Required 1 Required 3 >

Answer rating: 100% (QA)

SOLUTION 1 Computation of weighted average contribution margin Weighted average contribution margin per unit Contribution margin per unit of small fla... View the full answer