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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
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Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion’s products is given below: |
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| Â | Product A | Product B | ||
| Â Â Sales revenue | Â Â Â Â $ | 36,000 Â | Â Â Â Â $ | 51,000Â Â |
| Â Â Less: Variable costs | Â | 14,600 Â | Â | 23,000Â Â |
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| Â Â Contribution margin | Â Â Â Â $ | 21,400 Â | Â Â Â Â $ | 28,000 Â |
| Â Â Total units sold | Â | 940 Â | Â | 1,980 Â |
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| Pin Cushion’s fixed costs total $37,600. |
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| Required: | |
| 1. |
Determine Pin Cushion’s weighted-average unit contribution margin and weighted average contribution margin ratio. (Round your answers to 2 decimal places.) |
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| 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.) |
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| 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.) |
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| 4. |
Calculate the total sales necessary for Pin Cushion to earn a profit of $64,800. (Round your answers to 2 decimal places.) |
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| 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.) |
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| 6. |
Calculate Pin Cushion’s degree of operating leverage. (Round your answer to 2 decimal places.) |
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