Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $35,880 : 14,280 $20,800 920 Product B $58,888 22,688 $27,408 1.960 Pin Cushion's fixed costs total $37,300. 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 $64,600. 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $64,600. 6. Using the original information, calculate Pin Cushion's degree of operating leverage. Complete this question by entering your answers in the tabs below. 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 (1.e. .1234 should be entered as 12.34%.) Weighted-Average Unit CMS Weighted Average CM Ratio Required 2 > Required 1 Tequired 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.) Break-Even Sales Units Units SSSSSS 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.) No. of Units Units Product A Product B Units Calculate the total sales necessary for Pin Cushion to earn a profit of $64,600. (Round your intermediate calculations to 2 decimal places. Round your answer to 2 decimal places) Target Sales Revenue Using the original information, calculate Pin Cushion's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of Operating Leverage

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting

Authors: Heintz and Parry

20th Edition

1285892070, 538489669, 9781111790301, 978-1285892078, 9780538489669, 1111790302, 978-0538745192

More Books

Students also viewed these Accounting questions

Question

What do you like to do for fun/to relax?

Answered: 1 week ago

Question

Why are ratios and trends used in financial analysis?

Answered: 1 week ago