Solution
Margin of Safety | $ 3,450.00 |
Margin of safety percentage | 15.31% |
Working
Actual Sales (980 x 23) | $ 22,540.00 |
breakeven sales* | $ 19,090.00 |
Margin of Safety(22540-19090) | $ 3,450.00 |
Margin of safety percentage (3450/22540) | 15.31% |
*Breakeven sales
A | Sale Price per unit | $ 23.00 |
B | Variable Cost per Unit | $ 12.00 |
C=A x B | Unit Contribution | $ 11.00 |
D | Total Fixed cost | $ 9,130.00 |
E=D/C | Breakeven point in units | 830 |
F= E x A | Breakeven in sales dollars | $ 19,090.00 |
NELUI LU YUGSLIUN Molander Corporation is a distributor of a sun umbrella used at resort hotels....
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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 $ 28 $ 13 $12,600 990 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....
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 $ 26 $ 15 $ 9,790 1,040 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...
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 $ 26 $ 19 $ 5,600 950 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...
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 $ 14 $ 13,200 1,030 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...
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 $ 16 $ 6,020 1,010 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...