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 Unit sales per month $ 25 $ 13 $ 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 %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Unit sales per month
$ 25
$ 13
$ 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
%
Transcribed Image Text: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 Unit sales per month $ 25 $ 13 $ 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 %
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