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Exercise 5-5 (Static) Compute the Margin of Safety [LO5-5] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the
Exercise 5-5 (Static) Compute the Margin of Safety [LO5-5] 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 $ 30 Variable expense per unit $ 20 Fixed expense per month $ 7,500 Unit sales per month 1, 000 Required: 1. What is the company's margin of safety? 2. What is the company's margin of safety as a percentage of its sales? 1. Margin of safety (in dollars) 2. Margin of safety percentage
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