Question
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
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 | $ 30 |
|---|---|
| Variable expense per unit | $ 20 |
| Fixed expense per month | $ 7,500 |
| Unit sales per month | 1,000 |
Required:
1. What is the companys margin of safety?
2. What is the companys margin of safety as a percentage of its sales?
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Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
