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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
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 | $ 29 |
---|---|
Variable expense per unit | $ 13 |
Fixed expense per month | $ 13,120 |
Unit sales per month | 970 |
Required:
1. What is the company's margin of safety in sales dollars? (Do not round intermediate calculations.)
2. What is the company's margin of safety as a percentage of its sales (i.e., margin of safety in sales dollars divided by total current sales dollars)? (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)
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