Problem
Lindstrom company produces two fountain pen models. Information about its products follows: Product All I 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.
Required:
1. Determine Lindstrom's weighted average unit contributor margin and weighted average contribution margin ratio.