Requirement 1
Margin of Safety in Dollars = Sales - Breakeven sales
Breakeven sales = Fixed cost / Contribution margin % = 10790 / (26-13 ) / 26 = 10790 / 50% = $21580
Sales = 980 units x $26 = $25480
Margin of Safety in Dollars = $25480 - $21580 = $3900
Requirement 2
Margin of Safety percentage = Margin of Safety in Dollars / Sales in dollars = $3900 / $25480 = 15.31%
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the...
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 $27 per unit $19 per unit $6,640 per month 980 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...
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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 $ 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...
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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 $ 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...
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: A TA Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 25 14 $ 8,910 960 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...