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 | $ | 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
(i.e. .1234 should be entered as 12.34).)**

Answer #1

**Statement Showing Contribution per unit
and Total profit**

Description |
Amount |

Selling Price Per Unit | $24 |

Less: Variable Cost Per Unit | $12 |

Contribution Per Unit (a) | $12 |

Number of Units Sold (b) | 950 units |

Total Contribution c = ( a x b) | $11400 |

Less: Fixed Cost | $9600 |

Profit | $1800 |

P/V Ratio = ( Contribution Per Unit / Sell Price Per Unit) | 0.5 |

(1) Margin Of Safety Sales in Units = Total Profit / Contribution Per Unit = $1800 / $12 per Unit = 150 units

Margin Of Safety Sales In Amounts = Total Profit / P/v Ratio = $1800/0.5 = $3600

(2)

Margin Of Safety as Percentage Of Sales in Units = (150Units / 950 Units ) X 100 = 15.79%

Margin Of Safety as Percentage Of Sales in Amounts = ( $3600 / $22800 ) X 100 = 15.79%

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
$
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 $ 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...

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 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
$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...

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