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 | $ | 23 |
Variable expense per unit | $ | 17 |
Fixed expense per month | $ | 4,980 |
Unit sales per month | 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
|
Fixed expense per month | 4980 | |
Divide by Unit Contribution margin | 6 | =23-17 |
Break even sales units | 830 | |
Margin of safety units | 150 | =980-830 |
1 | ||
Margin of safety (in dollars) | 3450 | =150*23 |
2 | ||
Margin of safety percentage | 15.31% | =150/980 |
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 $ 23 Variable expense per unit $ 17 Fixed expense per month $ 4,980 Unit sales per month 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...
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 $ 29 Variable expense per unit $ 14 Fixed expense per month $ 12,450 Unit sales per month 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...
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 $ 23 Variable expense per unit $ 17 Fixed expense per month $ 5,340 Unit sales per month 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 $ 23 Variable expense per unit $ 14 Fixed expense per month $ 7,290 Unit sales per month $ 960 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 $ 30 Variable expense per unit $ 20 Fixed expense per month $ 7,500 Unit sales per month 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?
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...
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 $ 24 Variable expense per unit $ 13 Fixed expense per month $ 9,790 Unit sales per month 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 $30 per unit Variable expenses $20 per unit Fixed expenses $7,500 per month Unit sales 1,000 units per month Required: 1. Compute the company’s margin of safety. 2. Compute the company’s margin of safety as a percentage of its sales.
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 $ 18 $ 5,810 980 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...
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...