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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 $ 32,000

Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below:

Product A Product B
Sales revenue $ 32,000 $ 47,000
Less: Variable costs 13,000 21,400
Contribution margin $ 19,000 $ 25,600
Total units sold 860 1,900

Pin Cushions fixed costs total $36,400.

Required:

Determine Pin Cushions weighted-average unit contribution margin and weighted-average contribution margin ratio.

Calculate Pin Cushions break-even units and break-even sales revenue.

Calculate the number of units of each product that must be sold to break even.

Calculate the total sales necessary for Pin Cushion to earn a profit of $64,000.

Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $64,000.

Using the original information, calculate Pin Cushions degree of operating leverage.

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