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Lindstrom Company produces two fountain pen models. Information about its products follows: Product A $75,000 33,000 Product B $125,000 38,000 Sales revenue Less: Variable costs
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A $75,000 33,000 Product B $125,000 38,000 Sales revenue Less: Variable costs Contribution margin Total units sold $42,000 $ 87,000 5,000 5,000 Lindstrom's fixed costs total $78,500. 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 $150,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 8,000 total pens. Complete this question by entering your answers in the tabs below. Required Required Required Required 1 2 3 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%)). Show less Weighted Average CM Weighted-Average CM Ratio per Unit % Required 1 Required 2 > Required Required Required Required 1 2 3 4 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 Required 1 Show less A Units Break-Even Sales Units Break Even Sales Revenue Required Required Required Required 1 2 3 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. (Round your answer to the nearest whole number.) Target Sales Units Units Required Required Required Required 1 2 3 4 Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 8,000 total pens. (Round your margin of safety in units to the nearest whole number and your percentage of sales answer to 2 decimal places (i.e. .1234 should be entered as 12.34%)) Show less Units Margin of Safety Margin of Safety as Percentage of Sales %
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