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 | $ 25 |
|---|---|
| Variable expense per unit | $ 17 |
| Fixed expense per month | $ 6,560 |
| Unit sales per month | 970 |
Required:
1. What is the companys margin of safety? IN DOLLARS (Do not round intermediate calculations.)
2. What is the companys margin of safety as a percentage of its sales? PERCENTAGE (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren
4th Canadian Edition
1119709490, 9781119709497
