Exercise 6-8 Compute the Margin of Safety [LO6-7] 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 ariable expense per unit Fixed expense per month Unit sales per month 27 2$ 14 $ 11,180 1,010 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2 What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 6-8 Compute the Margin of Safety [LO6-7]
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
ariable expense per unit
Fixed expense per month
Unit sales per month
27
2$
14
$ 11,180
1,010
Required:
1. What is the company's margin of safety? (Do not round intermediate calculations.)
2 What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e.
0.1234 should be entered as 12.34).)
1. Margin of safety (in dollars)
2. Margin of safety percentage
Transcribed Image Text:Exercise 6-8 Compute the Margin of Safety [LO6-7] 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 ariable expense per unit Fixed expense per month Unit sales per month 27 2$ 14 $ 11,180 1,010 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2 What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage
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