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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 $125,000
Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $125,000 52,000 73,000 5,000 Product B $200,000 50,000 $150,000 5,000 Lindstrom's fixed costs total $83,500. 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 $110,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 9,000 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 1 Required 2 > Complete this question by entering your answers in the tabs below. 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.) Units Break-Even Sales 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 $110,000 profit. (Round your answer to the nearest whole number.) Target Sales Units Units Complete this question by entering your answers in the tabs below. 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 9,000 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%)) Margin of Safety Margin of Safety as Percentage of Sales Units %
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