1. Determine Lindstrom’s weighted-average unit contribution margin and weighted-

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1. Determine Lindstrom’s weighted-average unit contribution margin and weighted-average contribution margin ratio. (Round your answer to 2 decimal places.)

2. Calculate Lindstrom’s 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 $110,000 profit. (Round your answer to the nearest whole number. Use the amounts calculated in Requirement 1.)

4. Calculate Lindstrom’s margin of safety and margin of safety as a percentage of sales if it sells 8,900 total pens. (Round your percentage of sales answer to 2 decimal places and the other answer to the nearest whole number.)

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

Explanation / Answer

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Answer to point no(1)

Answer to point no(2)

Answer to point no(3)

Answer to point no(4)

Particulars Product A Product B Weighted Sales                         120,000                          170,000            290,000 Varible Cost                          52,800                            52,700            105,500 Contribution margin                          67,200                          117,300            184,500 Contribution margin ratio 56.00% 69.00% 63.62% Fixed Cost              83,000 Units Sold                        5,000.00                              5,000              10,000 Unit Selling Price                            24.00                              34.00                29.00

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