Ans:
CM ratio=Contribution ratio/Sales=26-12/26=53.8461%
Breakeven Sales=Fixed cost/CM Ratio
=12460/53.8461=23140
Actual Sales=1040*26=27040
Margin of Safety in Dollar=Actual Sales - Breakeven sales=27040-23140=3900
Margin of safety in %=Margin of safety in Dollar/Actual
Sales=3900/27040=14.42%
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 Selling price per unit Variable expense per unit 27 18 Fixed expense per month Unit sales per month 8,100 1,050 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. 0.1234 should...
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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