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 29 $4 $ 9,130 18 980 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. .1234 should be entered as 12.34).) 1. Margin of safety (in dollars) % 2. Margin of safety percentage

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...
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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
$4
2$
$ 9,130
29
18
980
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.
1234 should be entered as 12.34).)
1. Margin of safety (in dollars)
2. Margin of safety percentage
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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 $4 2$ $ 9,130 29 18 980 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. 1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage <Prev 7 of 12 Next > search 近
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