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Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below: Pin Cushion Company produces two modela of aewing
Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below:
Pin Cushion Company produces two modela of aewing basket. Information about Pin Cushion's products is given below Seles revenue Less: Variable costs Contributon margin Total units sald ProductA $31,000 12,600 $18.400 840 Product B $46,000 21,000 25,000 1,8s0 Pin Cushion's fixed costs total $36,100. Required: 1. Determine Pin Cushions weighted average unit contri ution margin and weighted average contribution mang n ratio. Round your CM per unit and weighted average CM ratio to two decimal places i.e. 1234 should be entered as 12.34% Wr ghtrd-Avsraso Unit C Weighled-Average CM Ralio 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.) Brcak-Fvcn Sale: Wnit Inits 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 ProductA Units Product B Units 4. Calculate the total sales necessary for Pin Cushion to earn a profit of $63,800. (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 $63,800. (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 LeverageStep by Step Solution
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