Question: PA 6 - 6 ( Algo ) Multiproduct CVP , Analyzing Break - Even Point, Target Profit, Degree of Operating Leverage [ LO 6 -

PA6-6(Algo) Multiproduct CVP, Analyzing Break-Even Point, Target Profit, Degree of Operating Leverage [LO 6-5,6-6]Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below: Product AProduct BSales revenue$ 41,000$ 56,000Less: Variable costs16,60025,000Contribution margin$ 24,400$ 31,000Total units sold1,0402,080Pin Cushions fixed costs total $39,100.Required:Determine Pin Cushions weighted-average unit contribution margin and weighted-average contribution margin ratio.Calculate Pin Cushions break-even units and break-even sales revenue.Calculate the number of units of each product that must be sold to break even.Calculate the total sales necessary for Pin Cushion to earn a profit of $65,800.Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $65,800.Using the original information, calculate Pin Cushions degree of operating leverage.
 PA6-6(Algo) Multiproduct CVP, Analyzing Break-Even Point, Target Profit, Degree of Operating

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!