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Problem
Lindstrom Company produces two fountain pen models, Information about its products follows: Lindstrom's fixed costs total $83,000. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. Calculate Lindstrom's break-even point in units and in sales revenue. Calculate the number of units that Lindstrom must sell to earn a $110,000 profit. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 8,000 total pens.
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