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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 $120,000
Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $120,000 60,000 $ 60,000 7,000 Product B $125,000 66,000 $ 59,000 7,000 Lindstrom's fixed costs total $84,500. 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 11,000 total pens
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