Exercise 2-8 (Algo) Compute the Margin of Safety [LO2-7) Molander Corporation is a distributor of a sun umbrella used at resort hotels Data concerning the next month budget appear below Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 25 5 $ 5,600 Required: 1. What is the company's margin of safety? (Do not round Intermediate calculations) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places 1234 should be entered as 12.34).) 1 Margin of safety in dotar) 2 Margin of safety percentage Miller Company's contribution format income statement for the most recent month is shown below Total $ 270,000 135,00 Sales (45,000 units) Variable expenses Contribution margin Fixed expenses Not operating income Per unit 56.00 30 53.00 591.000 Required: (Consider cach case independently 1. What is the revised net operating income il unit sales increase by 1897 2 What is the revised net operating income if the selling price decreases by 5110 per unit and the number of society 19%? 3. What is the revised net operating income the selling price increases toy 5110 per united by $6.000 number of units sold decreases by 7%? 4 What is the revised net operating income of the selling price per unit increases by 10% vartable prese contes unit and the number of units sold decreases by 97 1 Net operating income Net operating income Not operating income 4 Net opening income a - Next > Exercise 2-14 (Algo) Break-Even and Target Profit Analysis [LO2-3, LO2-4, LO2-5, L02-6) Lindon Company is the exclusive distributor for an automotive product that sells for $4600 per unit and has a oth company's fixed expenses are $303.600 per year. The company plans to sell 25 800 units this you Required: 1 What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dottor sales is required to attain a target profit of $165.600 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by 5460 per on what the company's new break-even point in unit sales and in dollar sales? What dollar sales as required to attain target profit of 55.600 1 Variable expense per un 2 Break even point in units Breskve point in dotter Un salos needed to target profit Dollar sales needed to attain target profit New break even point in units Now break even point in dotaris Dollar Sales noded to attain target pro