Sapphire Company produces two models of electric lawnmower. Information about Sapphires products is given below: Sapphires fixed

Sapphire Company produces two models of electric lawnmower. Information about Sapphire’s products is given below:

Sapphire’s fixed costs total $104,625.

Required:
1. Determine Sapphire’s weighted-average unit contribution margin and weighted-average contribution margin ratio.
2. Calculate Sapphire’s break-even units and break-even sales dollars.
3. Calculate the number of units of each product that must be sold to break even.
4. Calculate the total sales necessary for Sapphire to earn a profit of $172,305.
5. Calculate the sales revenue generated from each product line if Sapphire earns its target of $172,305 profit.
6. Calculate Sapphire’s degree of operatingleverage.

Transcribed Image Text:

Product A Product B Sales revenue Less: Variable costs Contribution margin Total units sold $264,400 171,400 $93,000 300 $396,600 213,000 $183,600 500