Question: PA 6 - 6 ( Algo ) Multiproduct CVP , Analyzing Break - Even Point, Target Profit, Degree of Operating Leverage [ LO 6 -
PAAlgo Multiproduct CVP Analyzing BreakEven Point, Target Profit, Degree of Operating Leverage LO Pin Cushion Company produces two models of sewing basket. Information about Pin Cushions products is given below: Product AProduct BSales revenue$ $ Less: Variable costsContribution margin$ $ Total units soldPin Cushions fixed costs total $Required:Determine Pin Cushions weightedaverage unit contribution margin and weightedaverage contribution margin ratio.Calculate Pin Cushions breakeven units and breakeven 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 $Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $Using the original information, calculate Pin Cushions degree of operating leverage.
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