Question

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price per unit $ 27 Variable expense per unit $ 17 Fixed expense per month $ 8,900 Unit sales per month 1,040 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 (i.e. .1234 should be entered as 12.34).

Answer #1

**Answer :-**

**Break even point in units = Fixed expense / CM per
unit**

**Break even point in units = $8,900 / ($27 -
$17)**

**Break even point in units = 890 units**

**Break even point in dollar sales = 890*$27 =
$24,030**

**1. Margin of Safety = Actual sales - Break even
sales**

**Margin of Safety = (1,040*$27) - $24,030 =
$4,050**

**2. Margin of Safety as a percentage of its sales =
Margin of safety / Actual sales**

**Margin of Safety as a percentage of its sales = $4,050 /
$28,080 = 14.42%**

**If you have any query feel free to ask in comment
section. Thanks**

Molander Corporation is a distributor of a sun umbrella used at
resort hotels. Data concerning the next month’s budget appear
below:
Selling price per unit
$
25
Variable expense per unit
$
12
Fixed expense per month
$
11,570
Unit sales per month
1,040
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...

Molander Corporation is a distributor of a sun umbrella used at
resort hotels. Data concerning the next month’s budget appear
below:
Selling price per unit
$
24
Variable expense per unit
$
18
Fixed expense per month
$
5,340
Unit sales per month
1,040
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...

Molander Corporation is a distributor of a sun umbrella used at
resort hotels. Data concerning the next month’s budget appear
below:
Selling price per unit
$
27
Variable expense per unit
$
13
Fixed expense per month
$
11,480
Unit sales per month
970
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...

Molander Corporation is a distributor of a sun umbrella used at
resort hotels. Data concerning the next month’s budget appear
below:
Selling price per unit
$
26
Variable expense per unit
$
18
Fixed expense per month
$
6,960
Unit sales per month
1,020
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...

Molander Corporation is a distributor of a sun umbrella used at
resort hotels. Data concerning the next month’s budget appear
below:
Selling price per unit
$
24
Variable expense per unit
$
12
Fixed expense per month
$
9,600
Unit sales per month
950
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...

Molander Corporation is a distributor of a sun umbrella used at
resort hotels. Data concerning the next month’s budget appear
below:
Selling price per unit
$
25
Variable expense per unit
$
19
Fixed expense per month
$
4,860
Unit sales per month
960
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...

Molander Corporation is a distributor of a sun umbrella used at
resort hotels. Data concerning the next month’s budget appear
below:
Selling price per unit
$
23
Variable expense per unit
$
15
Fixed expense per month
$
6,800
Unit sales per month
1,000
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...

Molander Corporation is a distributor of a sun umbrella used at
resort hotels. Data concerning the next month’s budget appear
below:
Selling price
$29
per unit
Variable expenses
$13
per unit
Fixed expenses
$13,120
per month
Unit sales
970
units per month
Required:
1.
Compute the company’s margin of safety.
2.
Compute the company’s 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)....

Molander Corporation is a distributor of a sun umbrella used at
resort hotels. Data concerning the next month’s budget appear
below: Selling price per unit $ 25 Variable expense per unit $ 15
Fixed expense per month $ 8,600 Unit sales per month 1,010
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...

Molander Corporation is a distributor of a sun umbrella used at
resort hotels. Data concerning the next month’s budget appear
below: Selling price per unit $ 26 Variable expense per unit $ 18
Fixed expense per month $ 6,960 Unit sales per month 1,020
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...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 14 minutes ago

asked 15 minutes ago

asked 23 minutes ago

asked 25 minutes ago

asked 28 minutes ago

asked 29 minutes ago

asked 33 minutes ago

asked 49 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago