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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
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 $45,000 18,200 $26,800 1,120 Product B $60,000 26,600 $33,400 2,160 Pin Cushion's fixed costs total $40,300 Required 1. Determine Pin Cushion's weighted-average unit contribution margin and weighted average contribution margin ratio. (Round your CM per unit and weighted average CM ratio to two decimal places (i.e. .1234 should be entered as 12.34%). Weighted-Average Unit CM Weighted-Average CM Ratio 2. 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.) 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 final answers to nearest whole number.) No. of Units Product A Units Product B Units 4. Calculate the total sales necessary for Pin Cushion to earn a profit of $66,600. Round your answers to 2 decimal places.) Target Sales Revenue 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $66,600. (Round your answers to 2 decimal places.) Product A Product B 6. Calculate Pin Cushion's current degree of operating leverage. (Round your answer to 2 decimal places.) Degree of Operating Leverage
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