Exercise 2-8 (Algo) Compute the Margin of Safety [LO2-7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: $ 28 $ 16 Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 10,560 1,030 Required: 1. What is the company's margin of safety? Note: Do not round intermediate calculations. 2. What is the company's margin of safety as a percentage of its sales? Note: Round your percentage answer to 2 decimal places (i.e. 1234 should be entered as 12.34). 1. Margin of safety (in dollars) 2. Margin of safety percentage
Exercise 2-8 (Algo) Compute the Margin of Safety [LO2-7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: $ 28 $ 16 Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 10,560 1,030 Required: 1. What is the company's margin of safety? Note: Do not round intermediate calculations. 2. What is the company's margin of safety as a percentage of its sales? Note: Round your percentage answer to 2 decimal places (i.e. 1234 should be entered as 12.34). 1. Margin of safety (in dollars) 2. Margin of safety percentage
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 2-8 (Algo) Compute the Margin of Safety [LO2-7]
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:
Selling price per unit
Variable expense per unit
Fixed expense per month
$ 28
$ 16
$ 10,560
1,030
Unit sales per month
Required:
1. What is the company's margin of safety?
Note: Do not round intermediate calculations.
2. What is the company's margin of safety as a percentage of its sales?
Note: Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).
1. Margin of safety (in dollars)
2. Margin of safety percentage
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35b03827-29c4-4fa1-890c-c2ce4a2ec4b5%2F711b7629-9594-429a-9c55-43ab594b0c9c%2Fsgwstff_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 2-8 (Algo) Compute the Margin of Safety [LO2-7]
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:
Selling price per unit
Variable expense per unit
Fixed expense per month
$ 28
$ 16
$ 10,560
1,030
Unit sales per month
Required:
1. What is the company's margin of safety?
Note: Do not round intermediate calculations.
2. What is the company's margin of safety as a percentage of its sales?
Note: Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).
1. Margin of safety (in dollars)
2. Margin of safety percentage
%
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