1. Break Even Sales = Fixed Cost / ( Contribution Marhin per Unit)
= Fixed Cost / ( Selling Price - Variable Cost)
= $ 6800 / ( $ 23-$ 15)
= 850 Units
Margin of safety = (Current Sales - Breakeven Sales)
= 1000 Units - 850 Units
= 150 Units
Answer : 150 Units
2.
Margin of safety = (Current Sales - Breakeven Sales)/ Current Sales
= (1000 Units - 850 Units) / 1000 Units
= 150 Units /1000 units
= 15.00%
Answer : 15.00%
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the...
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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 $27 per unit $17 per unit $8.500 per month Selling price Fixed expenses Unit sales 1,000 units per month Required: 1. Compute the companys margin of safety (Do not round intermediate calculations.) 2 Compute the companys margıin of safety as a percentage of its sales (Round your percentage answer to 2 decimal places p.e 1234 should be entered as...
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 $ 25 12 $11,050 1,000 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...
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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 $ 26 $ 17 $ 7,200 950 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...
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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 $ 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...