Exercise 6-8 Compute the Margin of Safety (L06-7) 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 $ 25 $ 18 $ 6,090 1,020 es 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 (.e. 0.1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage Check my work Exercise 6-9 Compute and Use the Degree of Operating Leverage (LO6-8] 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 Amount $ 131,000 52,400 78,600 18.000 $ 60,600 Saloa 1000 408 601 Required: 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 sales. 3. Construct a new contribution format income statement for the company assuming a 11% increase in sales. Exercise 6-10 Multiproduct Break-Even Analysis (L06-9) Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: claimjumper Makeover Total Sales $102,000 $ 51,000 $ 153,000 Variable expenses 25,480 5,120 30, 600 Contribution margin $ 76,520 $ 45,880 122,400 Fixed expenses 92,400 Net operating income $ 30,000 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? 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