Exercise 5-8 (Algo) Compute the Margin of Safety [LO5-7] 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 Required: $ 23 $ 15 $ 6,880 1,010 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 (i.e. .1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage % Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage [LO5-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Amount $ 128,000 51,200 76,800 Sales 100% 40 60% 20,000 $ 56,800 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 11% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Exercise 5-10 (Algo) Multiproduct Break-Even Analysis [LO5-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Claimjumper $ 96,000 29,800 Makeover $ 48,000 6,200 Contribution margin $ 66,200 $ 41,800 Fixed expenses Net operating income Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? Total $ 144,000 36,000 108,000 85,950 $ 22,050 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3