Question
Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below: Product A Product B Sales revenue $ 44,000
| Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below: |
| Product A | Product B | |||
| Sales revenue | $ | 44,000 | $ | 59,000 |
| Less: Variable costs | 17,800 | 26,200 | ||
| Contribution margin | $ | 26,200 | $ | 32,800 |
| Total units sold | 1,100 | 2,140 | ||
| Pin Cushions fixed costs total $40,000. |
| Required: | |
| 1. | Determine Pin Cushions weighted-average unit contribution margin and weighted average contribution margin ratio. (Round your answers to 2 decimal places.) |
Weighted-Average Unit CM = ?
Weighted-Average CM Ratio = ?%
| Calculate Pin Cushions break-even units and break-even sales revenue. (Round your "Sales Units" answer to the nearest whole number and "Sales Revenue" answer to 2 decimal places.) Break Even Sales Units = ? Units Break Even Sales Revenues = ?
Calculate the number of units of each product that must be sold to break even. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.) Number of Units Product A = ? Units Product B = ? Units
Target Sales Revenue = ?
Product A = ? Product B = ?
Degree of Operating Leverage= ?
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Social Responsibility Audit A Management Tool For Survival
Authors: John W Humble
1st Edition
0900853522, 978-0900853524
