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

MowFun’s fixed costs total $82,980.

Required:

1. Determine MowFun’s weighted average contribution margin and weighted average contribu¬ tion margin ratio.

2. Calculate MowFun’s break-even units and break-even sales dollars.

3. Calculate the number of units of each product that will be sold at break even.

4. Calculate the total sales necessary for MowFun to earn a profit of $172,305.

5. Calculate the sales revenue generated from each product line if MowFun earns its target of \($172,305\) profit.

6. Calculate MowFun’s degree of operating leverage.

Transcribed Image Text:

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