# 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

- Anonymous1 month ago
Sorry, I already took it, and aced it. Not doing your homework for you.

shut up asshole