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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Advanced Accounting
Authors: Floyd A. Beams, Robin P. Clement, Suzanne H. Lowensohn, Joseph H. Anthony
9th Edition
0131851225, 978-0131851221
