Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion's products is given...

 

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Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion's products is given below. Product A Product B $ 31,000 12,600 $ 18,400 $ 46,000 21,000 $25,000 1,880 840 Sales revenue Less: Variable costs Contribution margin Total units sold Pin Cushion's fixed costs total $36,100. 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 $63,800. 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $63,800. 6. Using the original information, calculate Pin Cushion's degree of operating leverage. Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion's products is given below. Product A Product B $ 31,000 12,600 $ 18,400 $ 46,000 21,000 $25,000 1,880 840 Sales revenue Less: Variable costs Contribution margin Total units sold Pin Cushion's fixed costs total $36,100. 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 $63,800. 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $63,800. 6. Using the original information, calculate Pin Cushion's degree of operating leverage.