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.


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  • CreatedFebruary 27, 2015
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