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Patriot Co.manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $51; white, $81; a
2. Assume if the company uses the new material, determine its new break-even point in both sales units and sales dollars of e
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Answer #1

1.

Determine the selling price per composite unit.
Ratio Selling price per unit Total per composite unit
Red 4 51 204
White 5 81 405
Blue 2 106 212
821
Determine the variable costs per composite unit.
Ratio Selling price per unit Total per composite unit
Red 4 36 144
White 5 56 280
Blue 2 76 152
576
Determine the break-even point in composite units.
Choose Numerator: / Choose Denominator: = Break even units
Fixed costs / Contribution per unit = Break even units
146000 / 245 = 596

2.

Determine the selling price per composite unit.
Ratio Selling price per unit Total per composite unit
Red 4 51 204
White 5 81 405
Blue 2 106 212
821
Determine the variable costs per composite unit.
Ratio Selling price per unit Total per composite unit
Red 4 22 88
White 5 32 160
Blue 2 62 124
372
Determine the break-even point in composite units.
Choose Numerator: / Choose Denominator: = Break even units
Fixed costs / Contribution per unit = Break even units
162000 / 449 = 361
Number per composite unit Number per composite units to break even Units sales at the break even point Dollar sales at the break even point
Red 4 361 1444 73644
White 5 361 1805 146205
Blue 2 361 722 76532
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