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Ques 1: Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The companys

Ques 1:

Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The companys monthly fixed expense is $32,500.

Required:

1. Calculate the unit sales needed to attain a target profit of $7,050. (Do not round intermediate calculations.)

2. Calculate the dollar sales needed to attain a target profit of $8,200. (Round your intermediate calculations to the nearest whole number.)

Ques 2:

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 $ 28
Variable expense per unit $ 12
Fixed expense per month $ 12,800
Unit sales per month 950

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. .1234 should be entered as 12.34).)

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