Contribution margin=Sales-Variable cost
=(30-14)=$16 per unit
Breakeven=Fixed expenses/Contribution margin
=(12800/16)
=800 units
Margin of safety=Total sales-Breakeven sales
=(950-800)=150 units
=150*30
=$4500
Margin of safety %=Margin of safety/Total sales
=150/950
=15.79%(Approx)
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 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 $ 29 $ 17 $ 10,560 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...
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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 $ 13 $ 10,790 980 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: 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...