Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Determine Pin
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Determine Pin Cushion's weighted-average unit contribution margin and weighted-average contribution margin ratio. (Roun your intermediate calculations to 2 decimal places. Round your CM per unit and weighted average CM ratio to two decimal places (i.e. .1234 should be entered as 12.34%.) Weighted-Average Unit CM Weighted-Average CM Ratio % Required 1 Required 2 > Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion's products is given below: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $40,000 16,200 $23,800 1,020 Product B $55,000 24,600 $30,400 2,060 Pin Cushion's fixed costs total $38,800. Required: 1. Determine Pin Cushion's weighted average unit contribution margin and weighted average contribution margin ratio. 2. Calculate Pin Cushion's break-even units and break-even sales revenue. 3. Calculate the number of units of each product that must be sold to break even. 4. Calculate the total sales necessary for Pin Cushion to earn a profit of $65,600. 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $65,600. 6. Using the original information, calculate Pin Cushion's degree of operating leverage. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Calculate Pin Cushion's break-even units and break-even sales revenue. (Round your units to the nearest whole number and sales revenue to two decimal places.) Break-Even Sales Units Units Break Even Sales Revenue Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Calculate the number of units of each product that must be sold to break even. (Round your answers to the nearest whole number.) No. of Units Product A Units Product B Units Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Calculate the total sales necessary for Pin Cushion to earn a profit of $65,600. (Round your intermediate calculations to 2 decimal places. Round your answer to 2 decimal places.) Target Sales Revenue Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $65,600. (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) Product A Product B Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Using the original information, calculate Pin Cushion's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of Operating Leverage
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started