SewFun Company produces two models of sewing basket. Information about SewFuns products is given below: SewFuns fixed
Question:
SewFun Company produces two models of sewing basket. Information about SewFun’s products is given below:
SewFun’s fixed costs total $35,200.
Required:
1. Determine SewFun’s weighted average contribution margin and weighted average contribu¬ tion margin ratio.
2. Calculate SewFun’s break-even units and break-even sales dollars.
3. Calculate the number of units of each product that will be sold at break even.
4. Calculate the total sales necessary for SewFun to earn a profit of $63,200.
5. Calculate the sales revenue generated from each product line if SewFun earns its target of \($63,200\) profit.
6. Calculate SewFun’s degree of operating leverage.
Step by Step Answer:
Managerial Accounting
ISBN: 9780078110771
1st Edition
Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips