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10 Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $279.000 per year. Additional data follow. Small Large Sales price per unit $ 21 $ 38 Variable costs per unit $ 13 $ 20 Sales mix percent 80% 20% The company is considering buying new equipment that would increase total fixed costs by $51,000 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 Required 2 >

10 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 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 Break-even point in units Break-even point - Small Break-even point - Large Required 1 Required 3 >

10 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 purchased. Compute the break-even point in total sales units and the number of units to sell for each product. Break-even point in units Break-even point - Small Break-even point Large < Required 2