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
image text in transcribed
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 $40,000 16,200 $23,880 1,020 Product B $55,000 24,600 330,400 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 ears 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. 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 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 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 Required 6 Using the original information, calculate Pin Cushion's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of Operating Loverage

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

Advanced Financial Accounting Lawrence S C Good Condition ISBN 08512

Authors: S.C. Lawrence

1st Edition

9780851215099

More Books

Students also viewed these Accounting questions