Question: Work Problem 18-7A (Static) Break-even analysis with two products LO P3 Patriot Company manufactures flags in two sizes, small and large. The company has total
Work Problem 18-7A (Static) 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 $240,000 per year. Addition data follow Small $ 20 $ 13 sex Large $ 30 $ 18 20% Sales price per unit Variable costs per unit Sales mix percent The company is considering buying new equipment that would increase total fixed costs by $48,000 per year and reduce the variabl 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 ences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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 35,000 28,8001 7200
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