Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 25 $ 13 $ 10,560 1,030 Required: 1. What is the company's margin of safety? Note: Do not round intermediate calculations. 2. What is the company's margin of safety as a percentage of its sales? Note: Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34). 1. Margin of safety (in dollars) 2. Margin of safety percentage %
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 25 $ 13 $ 10,560 1,030 Required: 1. What is the company's margin of safety? Note: Do not round intermediate calculations. 2. What is the company's margin of safety as a percentage of its sales? Note: Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34). 1. Margin of safety (in dollars) 2. Margin of safety percentage %
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...
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Question
![Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:
Selling price per unit
Variable expense per unit
Fixed expense per month
Unit sales per month
$ 25
$ 13
$ 10,560
1,030
Required:
1. What is the company's margin of safety?
Note: Do not round intermediate calculations.
2. What is the company's margin of safety as a percentage of its sales?
Note: Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).
1. Margin of safety (in dollars)
2. Margin of safety percentage
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccb668bc-10a4-4aaf-a388-7b2b8ddb3a25%2F3b504971-7d11-4098-938d-d4db06f99d53%2Fukagd7q_processed.png&w=3840&q=75)
Transcribed Image Text:Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:
Selling price per unit
Variable expense per unit
Fixed expense per month
Unit sales per month
$ 25
$ 13
$ 10,560
1,030
Required:
1. What is the company's margin of safety?
Note: Do not round intermediate calculations.
2. What is the company's margin of safety as a percentage of its sales?
Note: Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).
1. Margin of safety (in dollars)
2. Margin of safety percentage
%
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