Question
Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below: Product A Product B Sales revenue $ 36,000
Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below: |
Product A | Product B | |||
Sales revenue | $ | 36,000 | $ | 51,000 |
Less: Variable costs | 14,600 | 23,000 | ||
Contribution margin | $ | 21,400 | $ | 28,000 |
Total units sold | 940 | 1,980 |
Pin Cushions fixed costs total $37,600. |
Required: | |
1. | Determine Pin Cushions weighted-average unit contribution margin and weighted average contribution margin ratio.(Round your answers to 2 decimal places.) |
2. | 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.) |
3. | Calculate the number of units of each product that must be sold to break even.(Round your intermediate calculations to 2 decimal placesand final answer to nearest whole number.) |
4. | Calculate the total sales necessary for Pin Cushion to earn a profit of $64,800.(Round your answers to 2 decimal places.) |
5. | Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $64,800.(Round your answers to 2 decimal places.) |
6. | Calculate Pin Cushions degree of operating leverage.(Round your answer to 2 decimal places.) |
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