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ed 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
ed 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 $ 26 Variable expense per unit $ 18 $ 6,400 Unit sales per month 950 Fixed expense per month Required: 1. What is the company's margin of safety? (Do not round intermediate calculations \ Sales price per unit Variable cost per unit CM per unit (CMunit) ORIGINAL NEW Total Fixed Expenses b) Use the summarized cost structure to complete the CVP Profit formula below: ORIGINAL: NOI = NEW: NOI = Q- Q i) Include the CMunit amount in the first space of the formula above (highlighted yellow). Add the fixed manufacturing overhead and the fixed selling and administrative expenses together. Include the total fixed costs in the second space of the formula above. (highlighted green) c) Use the CVP profit formulas for both ORIGINAL and NEW cost structures, calculate the following: i) If Dorilane company produced and sold 2,500 furniture sets, what would their Net Operating Income be? ii) If Dorilane Company wanted to earn a profit (NOI) of $850,000, how many units would they need to sell
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