Question
Exercise 6-8 Compute the Margin of Safety [LO6-7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next
Exercise 6-8 Compute the Margin of Safety [LO6-7]
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next months budget appear below:
| Selling price per unit | $ | 25 |
| Variable expense per unit | $ | 18 |
| Fixed expense per month | $ | 5,670 |
| Unit sales per month | 960 | |
Required:
1. What is the companys margin of safety? (Do not round intermediate calculations.)
2. What is the companys margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)
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Risky Business Principles Of Auditing Property And Casualty Insurance
Authors: Seth A. Davis, CIA, CPA, CPCU, CFA, CISA
1st Edition
0894139711, 978-0894139710
