Managerial Accounting?

Patriot sells red, white, and blue. Their unit selling prices are red, $20; white, $35; and blue, $65. The per unit variable costs to manufacture are red, $12; white, $22; and blue, $50. Their sales mix is in a ratio of 5:4:2 (red:white:blue). Annual fixed costs shared by all three products are $250,000. The company has developed a new material of equal quality for less cost. The new material would reduce variable costs per unit as follows: red, by $6; white, by $12; and blue, by $10. However, the new material requires new equipment, which will increase annual fixed costs by $50,000.

2. Determine its break-even point in both sales units and sales dollars of each individual product.

Determine the selling price per composite unit.

Ratio Selling price per unit Total per composite unit

Red 5 $20.00 $100.00 

White 4 35.00 140.00

Blue 2 65.00 130.00

$370.00

Determine the variable costs per composite unit.

Ratio Variable cost per unit Total per composite unit

Red 5   

White 4  

Blue 2  

Determine the break-even point in composite units.

Choose Numerator: / Choose Denominator: = Break Even Units

Total fixed costs / Contribution margin per unit = Break even units

0  

Determine its break-even point in units and sales dollars of each individual product.

Number per composite unit Number of composite units to break even. Units sales at the break-even point Dollar sales at the break-even point

Red     

White    

Blue    

  

2 Answers

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  • Anonymous
    1 month ago

    Sorry, I already took it, and aced it. Not doing your homework for you.

    • Clara1 month agoReport

      shut up asshole

    • Commenter avatarLogin to reply the answers
  • Anonymous
    1 month ago

    move to homework help damn cheater.  I know moving it to the correct category is above your intellect. Maybe you could ask a 7th grader for help?

    • Clara1 month agoReport

      cheater is you asshole

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