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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 $145,000
Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $145,000 56,000 $ 89,000 5,000 Product B $195,000 62,000 $133,000 5,000 Lindstrom's fixed costs total $85,500. 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 $120,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 7,100 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%)). per Unit Weighted Average CM Weighted-Average CM Ratio % 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 Units Break Even Sales Revenue Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $120,000 profit. (Round your answer to the nearest whole number.) Target Sales Units Units Required 1 Required 2 Required 3 Required 4 Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 7,100 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%)) Units Margin of Safety Margin of Safety as Percentage of Sales %
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