#### (Solved): Lindstrom Company Produces Two Fountain Pen Models. Information About Its Products Follows: Product ...

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

 Product A Product B Sales revenue \$ 125,000 \$ 200,000 Less: Variable costs 52,000 50,000 Contribution margin \$ 73,000 \$ 150,000 Total units sold 5,000 5,000

Lindstrom’s fixed costs total \$83,500.

1. 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%)).

2.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.)

3.Calculate the number of units that Lindstrom must sell to earn a \$110,000 profit. (Round your answer to the nearest whole number.)

4.Calculate Lindstrom’s margin of safety and margin of safety as a percentage of sales if it sells 9,000 total pens. (Round your margin of safety in units to the nearest whole number and your percentage of sales answer to 2 decimal places (i.e. .1234 should be entered as 12.34%))