Question
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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