7 1.5 points Exercise 6-8 (Algo) Compute the Margin of Safety [LO6-7] Molander Corporation is a...
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7 1.5 points Exercise 6-8 (Algo) Compute the Margin of Safety [LO6-7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: 24 Selling price per unit Variable expense per unit Fixed expense per month $ $ 15 $ 7,560 990 Unit sales per month 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).) Answer is complete but not entirely correct. 1. Margin of safety (in dollars) 2. Margin of safety percentage 23,760 8.08 % 7 of 2 Line following information applies to the questions displayed below.j Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $75,000 per month and the company is selling 4,000 units per month. Percent Per Unit of Sales $ 75 100% 51 68 $ 24 321 Exercise 6-5 (Algo) Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Reg 2A Complete this question by entering your answers in the tabs below. Req 28 Answer is complete but not entirely correct. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. Net operating income by $5,000 increases Retur 7 1.5 points Exercise 6-8 (Algo) Compute the Margin of Safety [LO6-7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: 24 Selling price per unit Variable expense per unit Fixed expense per month $ $ 15 $ 7,560 990 Unit sales per month 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).) Answer is complete but not entirely correct. 1. Margin of safety (in dollars) 2. Margin of safety percentage 23,760 8.08 % 7 of 2 Line following information applies to the questions displayed below.j Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $75,000 per month and the company is selling 4,000 units per month. Percent Per Unit of Sales $ 75 100% 51 68 $ 24 321 Exercise 6-5 (Algo) Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Reg 2A Complete this question by entering your answers in the tabs below. Req 28 Answer is complete but not entirely correct. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. Net operating income by $5,000 increases Retur
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1 To calculate Margin of Safety Contribution Margin per unit Sell... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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