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ok M nces Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion's products is given below. Sales revenue Less: Variable
ok M nces 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 Pin Cushion's fixed costs total $35,800. Required: Product A Product B $ 30,000 12,200 $ 17,800 820 $ 45,000 20,600 $ 24,400 1,860 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 $63,600. 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $63,600. 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 S Required 6 Determine Pin Cushion's weighted-average unit contribution margin and weighted-average contribution margin ratio. Note: Round your intermediate calculations to 2 decimal places. Round your CM per unit and weighted average CM ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34%. Weighted-Average Unit CM Weighted-Average CM Ratio % Required 1 Required 2 >
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