SewFun Company produces two models of sewing basket. Information about SewFun’s products is given below:

SewFun’s fixed costs total $35,200.

Required:

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

2. Calculate SewFun’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 SewFun to earn a profit of $63,200.

5. Calculate the sales revenue generated from each product line if SewFun earns its target of \($63,200\) profit.

6. Calculate SewFun’s degree of operating leverage.

Transcribed Image Text:

Sales revenue - Variable costs Contribution margin Total units sold Product A Product B $28,000 $43,000 11,400 18,000 $16,600 $25,000 780 1,820