Required:

1. Determine Pin Cushions weighted-average unit contribution margin and weighted-average contribution margin ratio.

2. Calculate Pin Cushions 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 $67,000.

5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $67,000.

6. Using the original information, calculate Pin Cushions degree of operating leverage.

Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion's products is given below: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $ 47,000 19,000 $ 28,000 1,160 Product B $ 62,000 27,400 $ 34,600 2,200 Pin Cushion's fixed costs total $40,900