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 $31,000 12,600 $18,400 840 Product B $46,000 21,000 $25,000 1,880 Pin Cushion's fixed costs total $36,100. Required: 1. Determine Pin Cushion's weighted average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Pin Cushion's break-even units and break-even sales revenue. 3. Calculate the number of units of each product that must be sold to break even. 4. Calculate the total sales necessary for Pin Cushion to earn a profit of $63,800. 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $63,800. 6. Using the original information, calculate Pin Cushion's degree of operating leverage. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Determine Pin Cushion's weighted average unit contribution margin and weighted average contribution margin ratio. (Round your intermediate calculations to 2 decimal places. 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 % Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 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.) Units Break-Even Sales Units Break Even Sales Revenue Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Calculate the number of units of each product that must be sold to break even. (Round your answers to the nearest whole number.) Product A Product B No. of Units Units Units Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Calculate the total sales necessary for Pin Cushion to earn a profit of $63,800. (Round your intermediate calculations to 2 decimal places. Round your answer to 2 decimal places.) Target Sales Revenue Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $63,800. (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) Product A Product B Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Using the original information, calculate Pin Cushion's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of Operating Leverage
