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

%