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 $120,000 profit.

4. Calculate Lindstroms margin of safety and margin of safety as a percentage of sales if it sells 7,100 total pens.

Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $145,000 56,000 $ 89,000 5,000 Product B $195,000 62,000 $133,000 5,000 Lindstrom's fixed costs total $85,500