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Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Product A Product B $75,000 Less: Variable costs. 33,000 $42,000
Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Product A Product B $75,000 Less: Variable costs. 33,000 $42,000 $125,000 38,000 $87,000 5,000 5,000 contribution margin Total units sold Lindstrom's fixed costs total $78,500. Required: 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio (Round your contribution margin ratio to 1 decimal place (i.e. .123 should be enteled as 12.3%)). Weighted-Average CM Weighted-Average CM Ratio per Unit % 2. Calculate Lindstrom's break-even point in units and in sales revenue. (Round your "Sales Revenue" answer to 2 decimal places and "Sales Units" answer to the nearest whole number.) C
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