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Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed
Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $87,500. Required: Product A Product B $ 123,200 52,700 $ 91,500 5,000 $ 76,800 52,800 $ 46,500 5,000 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 (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. Note: Round your weighted-average CM to 2 decimal places and Weighted-Average CM Ratio to 1 decimal place (i.e. 0.123 should be entered as 12.3%). Weighted-Average CM Weighted-Average CM Ratio per Unit % Raquired 1 Required 2 > Required 1 Required 2 Required 3 Required 4 Calculate Lindstrom's break-even point in units and in sales revenue. Note: Do not round your intermediate calculations. Round your "Sales Revenue" answer to 2 decimal places and "Sales Units" answer to the nearest whole number. Break-Even Sales Units Break Even Sales Revenue Units M Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. Note: Do not round your intermediate calculations. Round your answer to the nearest whole number. Target Sales Units Units Required 1 Required 2 Required 3 Required 4 Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Note: Round your margin of safety in units to the nearest whole number, Margin of Safety in Dollars to 2 decimal places, and your percentage of sales answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34%) Margin of Safety in Units Margin of Safety in Dollars Units Show less A Margin of Safety as Percentage of Sales %
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