Randolph Company produces two fountain pen models. Information about its products follows: Product A Product B Sales Revenue $ 86,000 $ 120,000 ‘ Variable Costs
21,000 42,860 Contribution Margin $ 65,000 $ 77,140 Total units sold 5,000 5,000 Randolph’s fixed costs total $74,000. Requirement 1: Determine Randolph’s weighted
average contribution margin and weighted average contribution margin ratio. (Round your answers to 2 decimal places. Omit the “$” and “%” signs in your response.)
Weighted Avg CM $ per unit Weighted Avg CM ratio % Requirement 2: Calculate Randolph’s break even in units and in sales dollars. (Round your sales dollars answer
to 2 decimal places. Round up your sales units answer up to the next whole number. Omit the “$” sign in your response.) Break-Even Sales Units units Break Even
Sales Dollars $ Requirement 3: Calculate the number of units that Randolph must sell to earn a $155,000 profit. (Round up your answer up to the next whole number.)
Target sales units units Requirement 4: Calculate Randolph’s margin of safety and margin of safety as a percentage of sales if it sells 8,300 total pens. (Round
your percentage of sales answer to 2 decimal places and other answer up to the nearest whole number. Omit the “%” sign in your response.) Margin of Safety units
Margin of Safety as Percentage of Sales %