7.

8.

Ho 7. Exercise 5-8 (Algo) Compute the Margin of Safety (LO5-7] 10 points Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below. eBook Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 26 $ 16 $ 8,600 1,010 Hint Print References 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 lle. 1234 should be entered as 12.34).) 1. Margin of safety in dollars) 2. Margin of safety percentage 3 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 121,000 48,400 72,600 21,800 $ 51,600 60% eBook Hint Print References Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 12% increase in unit sales 3. Construct a new contribution format income statement for the company assuming a 12% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage hapter 5 - Homework i Powser=0&launchUrl= Saved 8 Sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 121,000 48,400 72,600 21,000 $ 51,600 100% 40% 60% 10 points eBook Hint Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 12% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 12% increase in unit sales. Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 12% increase in units (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places.1234 should be entered as 12.34).) by Net operating income Required 3 >