Question
In: Accounting
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are...
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $20; white, $35; and blue, $65. The per unit variable costs to manufacture and sell these products are red, $12; white, $22; and blue, $50. Their sales mix is reflected in a ratio of 5:4:2 (red:white:blue). Annual fixed costs shared by all three products are $250,000. 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 $6; white, by $12; and blue, by $10. However, the new material requires new equipment, which will increase annual fixed costs by $50,000. 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 composite units up to next whole number.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are...
Patriot Co.
manufactures and sells three products: red, white, and blue. Their
unit selling prices are red, $46; white, $76; and blue, $101. The
per unit variable costs to manufacture and sell these products are
red, $31; white, $51; and blue, $71. Their sales mix is reflected
in a ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by
all three products are $141,000. One type of raw material has been
used to manufacture all three products. The company has developed...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
National Co.
manufactures and sells three products: red, white, and blue. Their
unit sales prices are red, $46; white, $76; and blue, $101. The per
unit variable costs to manufacture and sell these products are red,
$31; white, $51; and blue, $71. Their sales mix is reflected in a
ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by all
three products are $141,000. One type of raw material has been used
to manufacture all three products. The company has developed...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
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...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
National Co. manufactures and sells three products: red, white,
and blue. Their unit sales prices are red, $53; white, $83; and
blue, $108. The per unit variable costs to manufacture and sell
these products are red, $38; white, $58; and blue, $78. Their sales
mix is reflected in a ratio of 5:4:2 (red:white:blue). Annual fixed
costs shared by all three products are $148,000. One type of raw
material has been used to manufacture all three products. The
company has developed...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
National Co.
manufactures and sells three products: red, white, and blue. Their
unit sales prices are red, $46; white, $76; and blue, $101. The per
unit variable costs to manufacture and sell these products are red,
$31; white, $51; and blue, $71. Their sales mix is reflected in a
ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by all
three products are $141,000. One type of raw material has been used
to manufacture all three products. The company has developed...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
National Co. manufactures and sells three products: red, white,
and blue. Their unit sales prices are red, $56; white, $86; and
blue, $111. The per unit variable costs to manufacture and sell
these products are red, $41; white, $61; and blue, $81. Their sales
mix is reflected in a ratio of 2:2:1 (red:white:blue). Annual fixed
costs shared by all three products are $151,000. One type of raw
material has been used to manufacture all three products. The
company has developed...
Garson, Inc. produces three products. Data concerning the selling prices and unit costs of the three...
Garson, Inc. produces three products. Data concerning the
selling prices and unit costs of the three products appear
below:
Product
F
G
H
Selling price
$
60
$
40
$
70
Variable costs
$
25
$
15
$
30
Fixed costs
$
50
$
5
$
47
Milling machine time (minutes)
10
5
5
Fixed costs are applied to the products on the basis of direct
labor hours.
Demand for the three products exceeds the company's productive
capacity. The milling...
Garson, Inc. produces three products. Data concerning the selling prices and unit costs of the three...
Garson, Inc. produces three products. Data concerning the
selling prices and unit costs of the three products appear
below:
Product
F
G
H
Selling price
$
75
$
55
$
85
Variable costs
$
50
$
40
$
55
Fixed costs
$
45
$
8
$
42
Milling machine time (minutes)
10
5
5
Fixed costs are applied to the products on the basis of direct
labor hours.
Demand for the three products exceeds the company's productive
capacity. The milling...
Information regarding the selling prices and unit costs of three products is as follows: Product F...
Information regarding the selling prices and unit costs of three
products is as follows:
Product
F
G
H
Selling price
$
70
$
50
$
80
Variable costs
$
30
$
20
$
35
Fixed costs
$
10
$
7
$
7
Machine time (minutes)
10
5
5
Fixed costs are applied to the products on the basis of direct
labor hours.
Due to the amount of machine time available, the company cannot
produce all the units demanded. The only...
Vinson Co. manufactures and sells one product. Assume the selling price for each item is $200/per unit. The...
Vinson Co. manufactures and sells one product. Assume
the selling price for each item is $200/per unit. The
following information pertains to the company’s first two years of
operation:
Variable Costs Per Unit:
Manufacturing:
Direct
Materials $32/unit
Direct
Labor $20/unit
Variable
Manufacturing
Overhead $4/unit
Variable Selling and
Administrative $3/unit
Fixed Costs:
Fixed Manufacturing
Overhead $660,000
Fixed Selling and
Administrative $120,000
Additionally, Vinson Company provides you with the following
inventory flow information in terms of units for YEAR 1 & YEAR
2:
YEAR
1 YEAR
2
Beginning Inventory
(units) 0 20,000
Units...
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