Randolph Company produces two fountain pen models. Information about its product
ID: 2368653 • Letter: R
Question
Randolph Company produces two fountain pen models. Information about its products follows. Randolph's fixed costs total $78,500. Determine Randolph's weighted average contribution margin and weighted average contribution margin ratio. (Omit the "$" and "%" signs in your response.) Calculate Randolph's break even in units and in sales dollars. (Round your sales dollars answer to 2 decimal places and sales units answer up to the next whole number. Omit the "$" sign in your response.) Calculate the number of units that Randolph must sell to earn a $150,000 profit. (Round your answer up to the next whole number.) Calculate Randolph's margin of safety and margin of safety as a percentage of sales if it sells 8,000 total pens (Round your percentage of sales answer to 2 decimal places and the other answer to the nearest whole number. Omit the "%" sign in your response.)Explanation / Answer
A B Total Sales 75000 125000 200000 VC -22000 -38000 -60000 Contribution 53000 87000 140000 Units 5000 5000 10000 Weighted Avg. unit CM 14 Weighted Avg. CM ratio 70.00% Break Even Units (FC/ CM per unit) 5607.142857 Dollars (FC/ CM) 112142.8571
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