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Required:

What is the company's degree of operating leverage?

Using the degree of operating leverage, estimate the impact on net operating income of a $8\%$ increase in unit sales.

Construct a new contribution format income statement for the company assuming a $8\%$ increase in unit sales.

Answer is not complete.

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Required $2$

Using the degree of operating leverage, estimate the impact on net operating income of a $8\%$ increase in unit sales.

Note: Round your intermediate calculations to $2$ decimal places. Round your percentage answer to $2$ decimal places $($i$.$e $1234$

should be entered as $12\mathrm{.}34).$

Exercise $6-5($Algo$)$ Compute the Margin of Safety $[$LO$6-5]$

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget

appear below:

Required:

What is the company's margin of safety?

Note: Do not round intermediate calculations.

What is the company's margin of safety as a percentage of its sales?

Note: Round your percentage answer to $2$ decimal places $($i$.$e$.1234$ should be entered as $12\mathrm{.}34).$

Margin of safety $($in dollars$)$

Margin of safety percentage

Exercise $6-5($Algo$)$ Compute the Margin of Safety $[$LO$6-5]$

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget

appear below:

Required:

What is the company's margin of safety?

Note: Do not round intermediate calculations.

What is the company's margin of safety as a percentage of its sales?

Note: Round your percentage answer to $2$ decimal places $($i$.$e$.1234$ should be entered as $12\mathrm{.}34).$

Margin of safety $($in dollars$)$

Margin of safety percentage