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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 u 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

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 u 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

FINANCIAL ACCOUNTING
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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Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $251,000 per year. Additional data follow. Sales price per unit Variable costs per unit Sales mix percent Small $ 23 $ 14 80% Large $ 33 $ 19 20% The company is considering buying new equipment that would increase total fixed costs by $57,000 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. 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
Transcribed Image Text:Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $251,000 per year. Additional data follow. Sales price per unit Variable costs per unit Sales mix percent Small $ 23 $ 14 80% Large $ 33 $ 19 20% The company is considering buying new equipment that would increase total fixed costs by $57,000 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. 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 $251,000 per year. Additional data follow. Sales price per unit Variable costs per unit Sales mix percent Small $ 23 $ 14 80% Large $ 33 $ 19 20% The company is considering buying new equipment that would increase total fixed costs by $57,000 per year and reduce the variable costs of each type of flag by $1 per unit. Break-even point in units Break-even point - Small Break-even point - Large 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 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.
Transcribed Image Text:Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $251,000 per year. Additional data follow. Sales price per unit Variable costs per unit Sales mix percent Small $ 23 $ 14 80% Large $ 33 $ 19 20% The company is considering buying new equipment that would increase total fixed costs by $57,000 per year and reduce the variable costs of each type of flag by $1 per unit. Break-even point in units Break-even point - Small Break-even point - Large 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 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.
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