Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below $ 29 Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 16 $ 10,920 990 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).) Answer is complete but not entirely correct. 1. Margin of safety (in dollars) 2. Margin of safety percentage 840 15.00 %

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6CE
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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
$ 29
Selling price per unit
Variable expense per unit
$ 16
$ 10,920
990
Fixed expense per month
Unit sales per month
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).)
Answer is complete but not entirely correct.
1. Margin of safety (in dollars)
2. Margin of safety percentage
840 X
15.00 %
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 $ 29 Selling price per unit Variable expense per unit $ 16 $ 10,920 990 Fixed expense per month Unit sales per month 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).) Answer is complete but not entirely correct. 1. Margin of safety (in dollars) 2. Margin of safety percentage 840 X 15.00 %
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