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 unitVariable expense per unitFixed expense per monthUnit sales per month$ 23$ 17$ 4,920970Required: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).)

Break even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No…

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 $ 23 $ 17 Variable expense per unit Fixed expense per month Unit sales per month $ 4,920 970 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).)

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 $ 23 $ 17 Variable expense per unit Fixed expense per month Unit sales per month $ 4,920 970 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).)

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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Question

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
$ 23
$ 17
$ 4,920
970
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).)

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