Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PA6-6 (Algo) Multiproduct CVP, Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage (LO 6-5, 6-6) Pin Cushion Company produces two models of sewing basket.

image text in transcribed

PA6-6 (Algo) Multiproduct CVP, Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage (LO 6-5, 6-6) 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 $33,000 13,400 $19,600 880 Product B $48,000 21,800 $26,200 1,920 Pin Cushion's fixed costs total $36,700. 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 $64,200. 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $64,200. 6. Using the original information, calculate Pin Cushion's degree of operating leverage

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Auditing A Complete Guide

Authors: Gerardus Blokdyk

2019 Edition

0655515879, 978-0655515876

More Books

Students also viewed these Accounting questions

Question

What are the objectives of Human resource planning ?

Answered: 1 week ago

Question

Explain the process of Human Resource Planning.

Answered: 1 week ago

Question

What is the preferred personality?

Answered: 1 week ago