Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below:
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.
Product A Sales revenue Less: Variable costs Contribution margin Total units sold $28,000 11,400 $16,600 Product EB $43,000 19,800 $23,200 1,820 780
Step by Step Answer:
Req 1 Product A Product B Overall Contribution Margin 16600 23200 39800 Units Sold 780 1820 2600 CM ...View the full answer
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Students also viewed these Managerial Accounting questions
-
A manufacturer produces two models of elliptical cross-training exercise machines. The times for assembling, finishing, and packaging model X are 3 hours, 3 hours, and 0.8 hour, respectively. The...
-
The Byte computer company produces two models of computers, Plain and Fancy. It wants to plan how many computers to produce next month to maximize profits. Producing these computers requires wiring,...
-
A company has 10,000 employees. Each employee is entitled to twenty days of paid holiday per calendar year. Up to five days of this entitlement may be carried forward and taken in the following year...
-
In May 2014, Antonio graduated from the UCLA with a degree in accounting and moved to Denver to look for work. Shortly after arriving in Denver, he obtained work as a staff accountant in a local CPA...
-
What is the level of measurement for each of the following variables? a. Student IQ (intelligence quotient) ratings. b. Distances students travel to class. c. Student scores on the first statistics...
-
What contrasts does a global perspective highlight in terms of social stratification?
-
In late 1980, the U.S. Commerce Department released new data showing inflation was 15%. At the time, the prime rate of interest was 21%, a record high. However, many investors expected the new Reagan...
-
What is the angle in radians between vector r <4, 3> and vector s ?
-
Lakewood Tennis Club (LTC) operates an indoor tennis facility. The company charges a $ 150 annual membership fee plus a member rental rate of $ 20 per court per hour. LTCs fiscal year end is August...
-
Lindstrom Company produces two fountain pen models. Information about its products follows: Lindstroms fixed costs total $78,500. Required: 1. Determine Lindstroms weighted-average unit contribution...
-
Franklin, Inc., produces one model of seat cover. Partial information for the company follows: Required: 1. Complete the table. 2. Calculate Franklins contribution margin ratio and its total...
-
Steam is to be condensed on the shell side of a heat exchanger at 120F. Cooling water enters the tubes at 60F at a rate of 115.3 lbm/s and leaves at 73F. Assuming the heat exchanger to be...
-
Craigslist, referred to as the world's largest classified advertising, came into the public spotlight after medical school student Philip H. Markoff was charged with the murder of a young woman he...
-
Planned Parenthood is a controversial organization that has an impact on any organization from which it obtains support and also from those organizations that withhold their support. Dayton-Hudson...
-
The New England Compounding Center (NECC) was the epicenter of a nationwide outbreak of meningitis that resulted in 77 deaths. The NECC produced a painkilling steroid for use in back treatments. The...
-
Tom Moore, president of Coca-Cola's Foodservice and Hospitality Division, was looking at sales in the fountain division, a division responsible for one-third of all of Coke's revenues. The fountain...
-
Biofuels were developed as an alternative to the use of oil and the dangers of its carbon footprint. Biofuels are made from corn, and the production of cars that run on biofuels has been mandated in...
-
Based on Exhibit 1, the results of Analysis 1 should show the yield on the 20-year bond decreasing by: A. 0.3015%. B. 0.6030%. C. 0.8946%. Rowan Madison is a junior analyst at Cardinal Capital. Sage...
-
Write a declaration for each of the following: a. A line that extends from point (60, 100) to point (30, 90) b. A rectangle that is 20 pixels wide, 100 pixels high, and has its upper-left corner at...
-
The best way to try to increase the cohesiveness of a team would be to __________. (a) start competition with other groups (b) add more members (c) reduce isolation from other groups (d) increase the...
-
A number of costs are listed below that may be relevant in decisions faced by the management of Svahn, AB, a Swedish manufacturer of sailing yachts: Required: Copy the information above onto your...
-
The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Management is concerned about the...
-
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An...
-
Q5 Financial maths Initial investment: E 25,000 Year 1 return: 8,000 Year 2 return: E 15,000 Year 3 return: E Year 4 return: E 10,000 5,000 (i) Enter appropriate formulae in the shaded cells in the...
-
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced 1st Quarter 10,000 2nd Quarter 7,500 3rd...
-
Annswer the following questions: [10 marks] A. Define two of the main advantages of explicit architecture. B. Compare between (1) Model-View-Controller (MVC), (1) Layered architecture pattern. The...
Study smarter with the SolutionInn App