Exercise 58 Compute the Margin of Safety [LO57]
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  $  30 
Variable expense per unit  $  17 
Fixed expense per month  $  10,530 
Unit sales per month  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 places (i.e. .1234 should be entered as 12.34).)

Contribution margin=SalesVariable cost
=(3017)=$13 per unit
Breakeven sales=Fixed cost/Contribution margin
=(10530/13)=810 units
Margin of safety=Total salesBreakeven sales
=(960810)=150 units
=(150*30)=$4500
Margin of safety %=Margin of safety/Total sales
=(150/960)=15.63%(Approx).
Exercise 58 Compute the Margin of Safety [LO57] Molander Corporation is a distributor of a sun...
Exercise 58 (Algo) Compute the Margin of Safety (LO57) 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 $ 18 $ 9,350 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...
Exercise 58 Compute the Margin of Safety (LO57] 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 $ $ $ 30 20 7,500 1,000 Required: 1. What is the company's margin of safety? 2. What is the company's margin of safety as a percentage of its sales? 1. Margin of safety (in...
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 $ 28 Variable expense per unit $ 17 Fixed expense per month $ 8,910 Unit sales per month 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 places...
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