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LO 6-3, 6-6 PA6-5 Analyzing Multiproduct CVP, Break-Even Point, Target Profit, Margin of Safety Lindstrom Company produces two fountain pen models. Information about its products
LO 6-3, 6-6 PA6-5 Analyzing Multiproduct CVP, Break-Even Point, Target Profit, Margin of Safety Lindstrom Company produces two fountain pen models. Information about its products follows Sales revenue Less: Variable costs Contribution margin Total units sold Product A $75,000 33,000 $42,000 Product B $125,000 38,000 87.000 5,000 5,000 Lindstrom's fixed costs total $78,500 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
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