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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