Question

In: Accounting

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


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