# 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.

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.

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