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Lindstrom Company produces two fountain pen models. Information about its products follows: Product A $ 75,600 36,900 Product B $ 124,400 51,800 $ 43,500 5,000
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A $ 75,600 36,900 Product B $ 124,400 51,800 $ 43,500 5,000 $ 88,500 5,000 Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $81,500. Required: 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution ma 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 (in units and sales dollars) and margin of safety as a percentage of data provided in the table above.
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