Problem $18-7$A $($Algo$)$ Break$-$even analysis with two products LO P$3$

Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $$291,000$ per year. Additional

data follow.

The company is considering buying new equipment that would increase total fixed costs by $$49,000$ 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.