Joan Company produces two backpack models. Information about its products follows: Joans fixed costs total $51,700. Required:

Joan Company produces two backpack models. Information about its products follows:

Joan’s fixed costs total $51,700.

Required:
1. Determine Joan’s weighted-average unit contribution margin and weighted-average contribution margin ratio.
2. Calculate Joan’s break-even point in units and in sales revenue.
3. Calculate the number of units that Joan must sell to earn a $95,000 profit.
4. Calculate Joan’s margin of safety and margin of safety as a percentage of sales if it sells 35,000 totalbackpacks.

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Sales revenue Less: Variable costs Contribution margin Total units sold Product A $135,000 81,000 54,000 15,000 Product B $77,000 38,500 $38,500 5,000