Exercise 5-8 (Static) Compute the Margin of Safety [L05-7] 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 $ 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? 6 Answer is complete but not entirely correct. 1. Margin of safety (in dollars) $ 4,050 8 2. Margin of safety percentage 16 0 %