I need help with "Units sales at break-even point" and "Dollar sales at break-even" for...
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I need help with "Units sales at break-even point" and "Dollar sales at break-even" for both of these. Please include the steps to get the answer. Thank you.
.74 points Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $61; white, 591; and blue, $116. The per unit variable costs to manufacture and sell these products are red, $46; white, $66, and blue, $86. Their sales mix is reflected in a ratio of 5:4:2 (red white:blue). Annual fixed costs shared by all three products are $156,000. One type of raw material has been used to manufacture all three products. 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 $9, white, by $19, and blue, by $9. However, the new material requires new equipment, which will increase annual fixed costs by $26,000. Required: 1. Assume if the company continues to use the old material, determine its break-even point in both sales units and sales dollars of each individual product. (Round composite units up to next whole number.)
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