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Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs. Contribution margin Total
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs. Contribution margin Total units sold $170,000 $220,000 73,100 $ 96,900 72,600 $147,400 5,000 5,000 Lindstrom's fixed costs total $88,000. 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 $130,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 7,600 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 1 Required 2 >
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