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Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below: Product A Product B Sales revenue $ 28,000
Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below: |
Product A | Product B | |||
Sales revenue | $ | 28,000 | $ | 43,000 |
Less: Variable costs | 11,400 | 19,800 | ||
Contribution margin | $ | 16,600 | $ | 23,200 |
Total units sold | 780 | 1,820 | ||
Pin Cushions fixed costs total $35,200. |
Required: | |
1. | Determine Pin Cushions weighted-average unit contribution margin and weighted average contribution margin ratio. (Round your answers to 2 decimal places.)
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Weighted-Average Unit CM Weighted-Average CM Ratio 2. Calculate Pin Cushion's break-even units and break-even sales revenue. (Round your "Sales Revenue" answer to 2 decimal places and "Sales Units" answer to the nearest whole number.) Break-Even Sales Units Units Break Even Sales Revenue 3. Calculate the number of units of each product that must be sold to break even. (Round your answer to the nearest whole number) No. of Units Product A Units Produc: B Units 4. Calculate the total sales necessary for Pin Cushion to earn a profit of $83,200. (Round your answer to 2 decimal places.) Sales Revenue 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of 583,200. (Round your intermediate calculations to two decimal places. Example: if it is a percentage value, provide the answer as 30.12%) Product A Produc: B 6. Cculate Pin Cushion's current degree of operating leverage. (Round your answer to 2 decimal places.)
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