Question

value: 10.00 points National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are red, $47; white, $77; and blue, $102. The per unit variable costs to manufacture and sell these products are red $32; white, $52, and blue, $72. Their sales mix is reflected in a ratio of 5:4:2 (red white:blue). Annual fixed costs shared by all three products are $142,000. 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 $7: white, by $17; and blue, by $7. However, the new material requires new equipment, which will increase annual fixed costs by $12,000. Required: 1. Assume if the company continues to use the old material, determine its break-even point in both sales units and sales dollars of each individual product. (Round up your composite units to whole number Omit the "$ sign in your response.) Break-Even Points//H1?Sales Unitsi l llllll Sales Dollars ll Red at break-even White at break-evern Blue at break-even 2. Assume if the company uses the new material, determine its new break-even point in both sales units and sales dolars of each individual product. (Round up your composite units to whole number the "$" sign in your response.) Red at break-even White at break-even Blue at break-even References Worksheet Ity; 3 Hard Learning Objective: 22 14 MacBook Pro esc

Answer 1

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