Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $
Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $ 165,000 72,600 $ 92,400 5,000 Product B $215,000 60,200 $154,800 5,000 Lindstrom's fixed costs total $87,500. 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 $130,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 7.500 total pens. Complete this question by entering your answers in the tabs below. Poquired 2 Required 3 Required 4 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 $130,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 7,500 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%)). per Unit Weighted Average CM Weighted-Average CM Ratio % eller Required 2 > 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 $130,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 7,500 total pens. 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. 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 $130,000 profit. 4. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 7,500 total pens. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $130,000 profit. (Round your answer to the nearest whole number.) Units Target Sales Units Required 4 >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started