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Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B $140,000 Sales revenue Less: Variable costs Contribution margin
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B $140,000 Sales revenue Less: Variable costs Contribution margin Total units sold 56,000 $ 84,000 5,000 $190,000 62,700 $127,300 5,000 Lindstrom's fixed costs total $85,000. 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 $120,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 7,000 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 12.3%)). Weighted-Average CM Weighted Average CM Ratio per Unit % Required Required 2 >
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