Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion's products is...
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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 $35,880 : 14,280 $20,800 920 Product B $58,888 22,688 $27,408 1.960 Pin Cushion's fixed costs total $37,300. 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 $64,600. 5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $64,600. 6. Using the original information, calculate Pin Cushion's degree of operating leverage. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Determine Pin Cushion's weighted average unit contribution margin and weighted average contribution margin ratio. (Round your intermediate calculations to 2 decimal places. Round your CM per unit and weighted average CM ratio to two decimal places (1.e. .1234 should be entered as 12.34%.) Weighted-Average Unit CMS Weighted Average CM Ratio Required 2 > Required 1 Tequired 2 Required 3 Required 4 Required 5 Required 6 Calculate Pin Cushion's break-even units and break-even sales revenue. (Round your units to the nearest whole number and sales revenue to two decimal places.) Break-Even Sales Units Units SSSSSS Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Calculate the number of units of each product that must be sold to break even. (Round your answers to the nearest whole number.) No. of Units Units Product A Product B Units Calculate the total sales necessary for Pin Cushion to earn a profit of $64,600. (Round your intermediate calculations to 2 decimal places. Round your answer to 2 decimal places) Target Sales Revenue Using the original information, calculate Pin Cushion's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of Operating Leverage
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