Required: 1. Compute the company's margin of safety. (Do not round intermediate calculations.) Margin of safety = 2. Compute 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). Margin of safety %

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 2E: Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a...
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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
Variable
expenses
Fixed expenses
Unit sales
$30 per unit
$15 per unit
$13,500 per month
1,050 units per
month
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 Variable expenses Fixed expenses Unit sales $30 per unit $15 per unit $13,500 per month 1,050 units per month
Required:
1. Compute the company's margin of safety. (Do not round intermediate calculations.)
Margin of safety
=
2. Compute 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).
Margin of safety
%
Transcribed Image Text:Required: 1. Compute the company's margin of safety. (Do not round intermediate calculations.) Margin of safety = 2. Compute 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). Margin of safety %
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