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: Lindstrom's fixed costs total $86,500. Required: 1. Determine Lindstrom's weighted-average unit contribution margin

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Lindstrom Company produces two fountain pen models. Information about its products follows: Lindstrom's fixed costs total $86,500. 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 $150,000 profit. 4. 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. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. Note: Round your weighted-average CM to 2 decimal places and Welghted-Average CM Ratio to 1 dedmal place (i.e. 0.123 should be entered as 12.3% ) Complete this question by entering your answers in the tabs below. Calculate Lindstrom's break-even point in units and in sales revenue. Note: Do not round your intermediate calculations. Round your "Saies Revenue" answer to 2 decimal places and "Sales Units" answer to the nearest whole number. 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 Complete this question by entering your answers in the tabs below. 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. Note: Round your margin of safety in units to the nearest whole number, Margin of Safety in Doliars to 2 decimal places, and your percentage of sales answer to 2 decimal places (1.e. 0.1234 should be entered as 12.34\%)

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

Students also viewed these Accounting questions

Question

What is job enlargement ?

Answered: 1 week ago

Question

what is the most common cause of preterm birth in twin pregnancies?

Answered: 1 week ago

Question

Which diagnostic test is most commonly used to confirm PROM?

Answered: 1 week ago

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago