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	$	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?

Solutions

Expert Solution

Answer :-

1. Margin of Safety

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

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: 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 $ 26 Variable expense per unit $ 17 Fixed expense per month $ 7650 Unit sales per month 1000 Required: 1. What is the company’s margin of safety? (Do not round intermediate calculations.) 2....

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: 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 $ 14 Fixed expense per month $ 12,960 Unit sales per month 960 Required: 1. What is the company’s margin of safety? (Do not round intermediate calculations.)

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 $ 30 Variable expense per unit $ 19 Fixed expense per month $ 9,350 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...

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 $ 15 Fixed expense per month $ 11,340 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...

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price $27 per unit Variable expenses $15 per unit Fixed expenses $10,560 per month Unit sales 1,030 units per month Required: 1. Compute the company’s margin of safety. (Do not round intermediate calculations.) 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...

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 $28 per unit Variable expenses $17 per unit Fixed expenses $8,910 per month Unit sales 960 units per month Required: 1. Compute the company’s margin of safety. (Do not round intermediate calculations.) 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...

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 $ 26 Variable expense per unit $ 13 Fixed expense per month $ 10,660 Unit sales per month 970 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...

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 $ 13 Fixed expense per month $ 13,600 Unit sales per month 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...

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 $27 per unit Variable expenses $12 per unit Fixed expenses $12,300 per month Unit sales 970 units per month Required: 1. Compute the company’s margin of safety. (Do not round intermediate calculations.) 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...

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below:

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: 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).)

Subjects