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 $23,800 1,020 Products $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. 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 Determine Pin Cushion's weighted-average unit contribution margin and welghted-average contribution margin ratio. (Round your intermediate calculations to 2 decimal places. Round your CM per unit and weighted average CM ratio to two decimal places (.e. .1234 should be entered as 12.34%.) Weighted Average Unit CM Weighted Average CM Ratio % k at Pin Cushion's fixed costs total $38,800. Required: 1. Determine Pin Cushion's welghted 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 carns its target profit of $65,600. 6. Using the original information, calculate Pin Cushion's degree of operating leverage. nces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 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.) Units Break-Even Sales Units Break Even Sales Revenue veldge. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 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.) Product A Product B No. of Units Units 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 nud 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
