Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue $ 7 6 , 6 0 0

Lindstrom Company produces two fountain pen models. Information about its products follows:
Product A Product B
Sales revenue $ 76,600 $ 123,400
Less: Variable costs 41,40052,800
Contribution margin $ 46,000 $ 91,000
Total units sold 5,0005,000
Lindstroms fixed costs total $86,500.
Required:
Determine Lindstroms weighted-average unit contribution margin and weighted-average contribution margin ratio.
Calculate Lindstroms break-even point in units and in sales revenue.
Calculate the number of units that Lindstrom must sell to earn a $150,000 profit.
Calculate Lindstroms margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above.Lindstrom Company produces two fountain pen models. Information about its products follows:
Lindstrom's fixed costs total $86,500.
Required:
Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio.
Calculate Lindstrom's break-even point in units and in sales revenue.
Calculate the number of units that Lindstrom must sell to earn a $150,000 profit.
Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales
data provided in the table above.
Complete this question by entering your answers in the tabs below.
Calculate the number of units that Lindstrom must sell to earn a $150,000 profit.
Note: Do not round your intermediate calculations. Round your answer to the nearest whole number.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Group

Authors: Ilse Lubbe, Shelley Herbert, Goolam Modack

1st Edition

0195998634, 9780195998634

More Books

Students also viewed these Accounting questions