Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $110,000

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $110,000 40,700 $ 69,300 5,000 Product B $160,888 52,809 $107,200 5.000 Lindstrom's fixed costs total $82,000. Required: 1. Determine Lindstrom's weighted average unit contribution margin and welghted 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 $110,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 8,700 total pens. 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. (Round your weighted average CM to 2 decimal places and Weighted-Average CM Ratio to 1 decimal place (I.e. 123 should be entered as 12.396)). Weighted-Average CM Weighted-Average CM Ratio per Unit % Required 2 > Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $110,000 40,700 $ 69,300 5,000 Product B $160,000 52,880 $107, 208 5,000 Lindstrom's fixed costs total $82,000. Required: 1. Determine Lindstrom's welghted-average unit contribution margin and welghted 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 $110,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales If It sells 8.700 total pens. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate Lindstrom's break-even point in units and in sales revenue. (Round your intermediate values to one decimal places. 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 Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $110,000 40,700 $ 69,380 5,000 Product B $160,000 52,800 $107,200 5,000 Lindstrom's fixed costs total $82,000. Required: 1. Determine Lindstrom's weighted average unit contribution margin and weighted average contribution margin ratlo. 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 $110,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 8,700 total pens. 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 $110,000 profit. (Round your answer to the nearest whole number) Targer Sales Units Units Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $110,000 40,700 $ 69,3ee 5,800 Product B $160,000 52,800 $1e7, 2ee 5,600 Lindstrom's fixed costs total $82,000. Required: 1. Determine Lindstrom's welghted 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 $110,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 8,700 total pens. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 8,700 total pens. (Round your margin of safety in units to the nearest whole number and your percentage of sales answer to 2 decimal places (le. 1234 should be entered as 12.34%)] Margin of Safety Margin of Safety as Percentage of Sales Units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Financial Accounting A Guide For Non-specialists

Authors: Jimmy Winfield, Mark Graham, Taryn Miller

1st Edition

0198847270, 9780198847274

More Books

Students also viewed these Accounting questions