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Im not sure if im not using the right formula or what im missing but i am extremely puzzled with step 5. Please help. Pin
Im not sure if im not using the right formula or what im missing but i am extremely puzzled with step 5. Please help.
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 Product B $28,000 $43,000 11,400 19,800 $16,600 $23,200 780 1,820 Pin Cushion's fixed costs total $35,200. Required: 1. Determine Pin Cushion's weighted average unit contribution margin and weighted average contribution margin ratio. (Round your CM per unit and weighted average CM ratio to two decimal places (ie..1234 should be entered as 12.34%.). Answer is complete and correct. $ 15.31 Weighted-Average Unit CM Weighted-Average CM Ratio 56.05% 2. 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.) Answer is complete and correct. 2,299 Units Break-Even Sales Units Break Even Sales Revenue $ 62,801.07 3 Calculate the number of units of each product that must be sold to break even (Round your answers to the nearest whole number) 3. Calculate the number of units of each product that must be sold to break even. (Round your answers to the nearest whole number.) Answer is complete and correct. No. of Units Product A 690 Units 1,609 Units Product B 4. Calculate the total sales necessary for Pin Cushion to earn a profit of $63,200. (Round your answer to 2 decimal places.) Answer is complete and correct. Target Sales Revenue $ 175,557.54 Calculate the sales revenue generated from each product line if Pin Cushion earns its target ofit of 200. your final to 2 decimal es.) Answer is complete but not entirely correct. $ 46,590.27 Product A Product B 108,643.10 6. Calculate Pin Cushion's current degree of operating leverage. (Round your final answers to 2 decimal places.)Step by Step Solution
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