SewFun Company produces two models of sewing basket. Information about SewFun\'s

Question

SewFun Company produces two models of sewing basket. Information about SewFun's products is given bellow: SewFun's fixed costs total $35,200. Determine SewFun's weighted average contribution margin and weighted average contribution margin ratio. (Round your answers to 2 decimal places. Omit the "$" and "%" signs in your response.) Calculate SewFun's break-even units and break-even sales dollars. (Round your sales dollars answer to 2 decimal places. Omit the "$" sign in your response.) Calculate the number of units of each product that will be cold at breakeven. Calculate the total sales necessary for SewFun to earn a profit of $63,200. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Calculate the sales revenue generated from each product line if SewFun earns its target of $63,200 profit. (Round your answers to 2 decimal places. Omit the "$" sign in your respone.) Calculate SewFun's degree of operating leverage. (Round your answer to 2 decimal places.)

Explanation / Answer

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A B Total Sales 28000 43000 71000 VC -11400 -18000 -29400 Contribution 16600 25000 41600 Units 780 1820 2600 Weighted Avg. unit CM 16 Weighted Avg. CM ratio 58.59% Break Even Units (FC/ CM per unit) 2200 Dollars (FC/ CM) 60076.92

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