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Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue $ 155,000 $ 205,000 Less: Variable costs

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

Product A Product B
Sales revenue $ 155,000 $ 205,000
Less: Variable costs 57,000 61,500
Contribution margin $ 98,000 $ 143,500
Total units sold 5,000 5,000

Lindstroms fixed costs total $86,500.

Required:
1.

Determine Lindstroms weighted-average unit contribution margin and weighted-average contribution margin ratio. (Round your answer to 2 decimal places.)

2.

Calculate Lindstroms break-even point in units and in sales revenue. (Round your "Sales Revenue" answer to 2 decimal places and "Sales Units" answer to the nearest whole number.)

3.

Calculate the number of units that Lindstrom must sell to earn a $130,000 profit. (Round your answerto the nearest whole number. Use the amounts calculated in Requirement 1.)

4.

Calculate Lindstroms margin of safety and margin of safety as a percentage of sales if it sells 7,300 total pens. (Round your percentage of sales answer to 2 decimal places and the other answer to the nearest whole number.)

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