Contribution margin per unit = Selling price per unit () Variable cost per Unit = $ 28 () $ 14 = $ 14 

Break Even Sales = (Fixed Cost / Contribution margin per unit ) x Selling price = ( $ 11,620 / $ 14 ) x $ 28 = $ 23,240 

1)  
Margin of safety in dollars = Total sales () Break Even Sales = ( 980 Units x $ 28 ) () $ 23,240 = $ 27,440 () $ 23,240 
$ 4,200 
2)  
Margin of safety inpercentage = Margin of safety in dollars / Total Sales = $ 4,200 / $ 27,440 
15.31% 
Exercise 68 Compute the Margin of Safety (LO67) Molander Corporation is a distributor of a sun...
Exercise 38 Compute the Margin of Safety [LO37] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price Variable expenses $27 per unit S16 per unit $9.680 per month 1.030 units per month Unit sales Required: 1. Compute the company's margin of safety. (Do not round intermediate calculations.) Margin of safety 2. Compute the company's margin of safety as a percentage of its sales. (Round your percentage...
Exercise 58 Compute the Margin of Safety (LO57] 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 Variable expense per unit Fixed expense per month Unit sales per month $ $ $ 30 20 7,500 1,000 Required: 1. What is the company's margin of safety? 2. What is the company's margin of safety as a percentage of its sales? 1. Margin of safety (in...
Exercise 58 (Algo) Compute the Margin of Safety (LO57) 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 Variable expense per unit Fixed expense per month Unit sales per month $ 29 $ 18 $ 9,350 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...
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 Variable expense per unit Fixed expense per month Unit sales per month $ 25 $ 18 $ 5,810 980 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...
Che 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 Varlable expense per unit Fixed expense per onth Unit sales per month 8.35 28 ponts 14 $ 11,620 980 0415 49 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...
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 Variable expense per unit Fixed expense per month Unit sales per month $12,460 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. 0.1234 should be entered as...
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 Variable expense per unit Fixed expense per month Unit sales per month $ 26 $ 13 $ 10,920 990 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 Variable expense per unit Fixed expense per month Unit sales per month $ 25 $ 13 $10,440 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 (i.e....
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: $ 29 Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 11,440 1,030 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 (ie. 0.1234...
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 Variable expense per unit Fixed expense per month Unit sales per month 25 $ 17 $ 6,720 990 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....