Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $270,000 per year. Additional data follow. Sales price per unit Variable costs per unit Sales nix percent Small $ 26 $18 80% Large $38 $ 20 20% The company is considering buying new equipment that would increase total fixed costs by $47,900 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 new equipment. Weighted-average contribution margin
Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $270,000 per year. Additional data follow. Sales price per unit Variable costs per unit Sales nix percent Small $ 26 $18 80% Large $38 $ 20 20% The company is considering buying new equipment that would increase total fixed costs by $47,900 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 new equipment. Weighted-average contribution margin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $270,000 per year. Additional
data follow
Sales price per unit
Variable costs per unit
Sales nix percent
Small
$ 26
$ 18
80%
Large
$ 38
$ 20
The company is considering buying new equipment that would increase total fixed costs by $47,900 per year and reduce the variable
costs of each type of flag by $1 per unit.
201
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
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 new equipment.
Weighted-average contribution margin
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.
Break-even point in units
Break-even point-Small
Break-even point -Large
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd5f1c7a0-bb1e-4287-93e8-b160e7c596ce%2F4e624899-7b64-4524-9f20-98527c159df1%2Fzr5pu47_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $270,000 per year. Additional
data follow
Sales price per unit
Variable costs per unit
Sales nix percent
Small
$ 26
$ 18
80%
Large
$ 38
$ 20
The company is considering buying new equipment that would increase total fixed costs by $47,900 per year and reduce the variable
costs of each type of flag by $1 per unit.
201
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
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 new equipment.
Weighted-average contribution margin
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.
Break-even point in units
Break-even point-Small
Break-even point -Large
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.
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