FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Variable
expenses
Fixed expenses
Unit sales
$29 per unit
$13 per unit
$12,960 per month
units per
month
960
1. Compute the company's margin of safety. (Do not round intermediate calculations.)
Margin of Safety_
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 should be entered as 12.34).
Margin of Safety_
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Transcribed Image Text:Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price Variable expenses Fixed expenses Unit sales $29 per unit $13 per unit $12,960 per month units per month 960 1. Compute the company's margin of safety. (Do not round intermediate calculations.) Margin of Safety_ 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 should be entered as 12.34). Margin of Safety_
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