14.

value: 5.78 points

Exercise 5-8 Compute the Margin of Safety [LO7]

Mohan Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next months budget appear below:

Selling price		$26	per unit
Variable expenses		$18	per unit
Fixed expenses		$6,640	per month
Unit sales		980	units per month

Required:
1.	Compute the companys margin of safety.

Margin of safety

$

2.	Compute the companys margin of safety as a percentage of its sales. (Round your answer to 2 decimal places.)

Margin of safety

%

14 578 points Exercise 5-8 Compute the Margin of Safety LO71 Mohan Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next month's budget appear below: Selling price $26 per unit Variable expenses $18 per unit $6.640 per month Fixed expenses 980 units per month Unit sales Required 1. Compute the company's margin of safety. 150 Margin of safety 2. Compute the company's margin of safety as a percentage of its sales. (Round your answer to 2 decimal places.) 15.31 Margin of safety