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

Randolph’s fixed costs total $78,500.
Required:
1. Determine Randolph’s weighted average contribution margin and weighted average contribution margin ratio.
2. Calculate Randolph’s break even in units and in sales dollars.

3. Calculate the number of units that Randolph must sell to earn a \($150,000\) profit.
4. Calculate Randolph s margin of safety and margin of safety as a percentage of sales if it sells 8,000 total pens.

Transcribed Image Text:

Sales Revenue - Variable Costs Contribution Margin Total units sold Product A $75,000 22,000 Product B $125,000 38,000 $53,000 $ 87,000 5,000 5,000