Pin Cushion Company produces two models of sewing basket

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January 5th, 2018

Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion’s products is given below: Product AProduct B Sales revenue $36,000 $51,000 Less: Variable costs14,600 23,000 Contribution margin $21,400 $28,000 Total units sold940 1,980 Pin Cushion’s fixed costs total $37,600. Required:1.Determine Pin Cushion’s weighted-average unit contribution margin and weighted average contribution margin ratio. (Round your answers to 2 decimal places.) 2.Calculate Pin Cushion’s break-even units and break-even sales revenue. (Round your “Sales Units” answer to the nearest whole number and “Sales Revenue” answer to 2 decimal places.) 3.Calculate the number of units of each product that must be sold to break even. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.) 4.Calculate the total sales necessary for Pin Cushion to earn a profit of $64,800. (Round your answers to 2 decimal places.) 5.Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $64,800. (Round your answers to 2 decimal places.) 6.Calculate Pin Cushion’s degree of operating leverage. (Round your answer to 2 decimal places.)

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