Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below:
Question:
Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion’s products is given below:
Pin Cushion’s fixed costs total $35,200.
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 $63,200. 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $63,200. 6. Calculate Pin Cushion’s degree of operatingleverage.
Transcribed Image Text:
Product A Sales revenue Less: Variable costs Contribution margin Total units sold $28,000 11,400 $16,600 Product EB $43,000 19,800 $23,200 1,820 780
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Req 1 Product A Product B Overall Contribution Margin 16600 23200 39800 Units Sold 780 1820 2600 CM ...View the full answer
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