Lemming Company produces two backpack models. Information about its products follows:

Lemming’s fixed costs total $51,700.

Required:

1. Determine Lemming’s weighted average contribution margin and weighted average contribu¬ tion margin ratio.

2. Calculate Lemming’s break even in units and in sales dollars.

3. Calculate the number of units that Lemming must sell to earn a \($95,000\) profit.

4. Calculate Lemming’s margin of safety and margin of safety as a percentage of sales if it sells 35,000 total backpacks.

Transcribed Image Text:

Product A Product B Sales revenue - Variable costs $135,000 $77,000 67,000 21,500 Contribution margin Total units sold $ 68,000 $55,500 15,000 5,000