National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices...
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Accounting
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are red $50; white, $80; and blue, $105. The per unit variable costs to manufacture and sell these products are red $35; white, $55; and blue, $75. Their sales mix is reflected in a ratio of 5:4:2 (red:white:blue). Annual fixed costs shared by all three products are $145,000. 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 $15; white, by $25; and blue, by $15. However, the new material requires new equipment, which will increase annual fixed costs by $15,000 Required 1. Assume if the company continues to use the old material, determine its break-even point in both sales units and sales dollars of each individual product. (Round up your composite units to whole number Omit the "$" sign in your response.) Break-Even Points Red at break-even White at break-even Blue at break-even Sales Units Sales Dollars 2. Assume if the company uses the new material, determine its new break-even point in both sales units and sales dollars of each individual product. (Round up your composite units to whole number. Omit the "$" sign in your response.) Break-Even Points Red at break-even White at break-evern Blue at break-even Sales Units Sales Dollars

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