Molander Corporation is a distributor of a sun umbrella used at resort hotels Data concerning the next months budget appear below Required 1 Compute the companys margin of safety 2 Compute the companys margin of safety as a percentage of its sales $30 per unit Selling price Variable expenses $20 pe...

1 To compute the margin of safety we must first compute the breakeven unit sales Profit U ...

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next

Question:

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

$30 per unit Selling price Variable expenses $20 per unit $7,500 per month 1,000 units per month Fized expenses Unit sal

Required:

1. Compute the company’s margin of safety.

2. Compute the company’s margin of safety as a percentage of its sales.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...