Lindstrom Company produces two fountain pen models. Information about its products follows:

	Product A			Product B
Sales revenue	$	170,000		$	220,000
Less: Variable costs		73,100			72,600
Contribution margin	$	96,900		$	147,400
Total units sold		5,000			5,000

Lindstroms fixed costs total $88,000.

Required:

1. Determine Lindstroms weighted-average unit contribution margin and weighted-average contribution margin ratio.

2. Calculate Lindstroms break-even point in units and in sales revenue.

3. Calculate the number of units that Lindstrom must sell to earn a $130,000 profit.

4. Calculate Lindstroms margin of safety and margin of safety as a percentage of sales if it sells 7,600 total pens.

Determine Lindstroms 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		per Unit
Weighted-Average CM Ratio		%

Calculate Lindstroms 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

Calculate the number of units that Lindstrom must sell to earn a $130,000 profit. (Round your answer to the nearest whole number.)

Target Sales Units

Units

Calculate Lindstroms margin of safety and margin of safety as a percentage of sales if it sells 7,600 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		Units
Margin of Safety as Percentage of Sales		%