Problem 18-7A Required Compute the weighted-average contribution margin without the new equipment. Break-even analysis with two products P3 1. Patriot Co. manufactures flags in two sizes, small and large. The company has total fixed costs of $240,000 per year. Assume the new equipment is not purchased. 2. Additional data follow. Determine the break-even point in total sales units and the break-even point in units for each product. Small Large Sales price per unit...... Variable costs per unit... Sales mix percent....... $20 $30 3. Assume the new equipment is purchased. Compute $13 $18 the break-even point in total sales units and the 80% 20% number of units to sell for each product. The company is considering buying new equipment that would increase total fixed costs by $48,000 per year and PROBLEM SET B reduce the variable costs of each tyne of flag by $1 per unit.

Problem 18-7A Required Compute the weighted-average contribution margin without the new equipment. Break-even analysis with two products P3 1. Patriot Co. manufactures flags in two sizes, small and large. The company has total fixed costs of $240,000 per year. Assume the new equipment is not purchased. 2. Additional data follow. Determine the break-even point in total sales units and the break-even point in units for each product. Small Large Sales price per unit...... Variable costs per unit... Sales mix percent....... $20 $30 3. Assume the new equipment is purchased. Compute $13 $18 the break-even point in total sales units and the 80% 20% number of units to sell for each product. The company is considering buying new equipment that would increase total fixed costs by $48,000 per year and PROBLEM SET B reduce the variable costs of each tyne of flag by $1 per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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