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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 | $ | 24 |
Variable expense per unit | $ | 12 |
Fixed expense per month | $ | 10,560 |
Unit sales per month | 1,030 | |
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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