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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 Product A
Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A Product B $165,000 $215,000 72,600 $ 92,400 5,000 60,200 $154,800 5,000 Lindstrom's fixed costs total $87,500. 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 $130,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 7,500 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 3,540 Units Break Even Sales Revenue < Required 1 Required 3 >
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