Lindstrom Company produces two fountain pen models. Information about its products follows: Lindstroms fixed costs total $78,500.

Lindstrom Company produces two fountain pen models. Information about its products follows:

Lindstrom’s fixed costs total $78,500.
Required:
1. Determine Lindstrom’s weighted-average unit contribution margin and weighted-average contribution margin ratio.
2. Calculate Lindstrom’s break-even point in units and in sales revenue.
3. Calculate the number of units that Lindstrom must sell to earn a $150,000 profit.
4. Calculate Lindstrom’s margin of safety and margin of safety as a percentage of sales if it sells
8,000 totalpens.

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Product A Sales revenue Less: Variable costs Contribution margin Total units sold Product bB $125,000 38,000 87,000 5,000 $75,000 33,000 $42,000 5,000