Question: connect.ht : a search Problem 18-7A Break-even analysis with composite units LO P4 Patriot Co. manufactures and sells three products: red, white, and blue. Their
connect.ht : a search 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, $ reflected in a ratio of 5:42 (redwhite:blue). Annual fixed cost been used to manufacture all three products. The company has developed a new material of equal quality for less cost.I 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. 50. Their sales mix is ). Annual fixed costs shared by all three products are $250,000. One type of raw material has he new 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) Determine its Total per Red Total per Prev 12 of 12E Next
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