Question: A) Required: 1. Using the equation method, determine for the unit sales that are required to earn a target profit of $8,450. 2. Using the
A) Required:
1. Using the equation method, determine for the unit sales that are required to earn a target profit of $8,450.
2. Using the formula method, determine for the unit sales that are required to earn a target profit of $9,700. (Round your answer to the nearest whole number.)
B) Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next months budget appear below:
| Selling price | $25 | per unit | |
| Variable expenses | $18 | per unit | |
| Fixed expenses | $6,090 | per month | |
| Unit sales | 1,020 | units per month | |
Required:
1. Compute the companys margin of safety.
2. Compute the companys 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).
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