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Compute the companys margin of safety

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Reference no: EM131754249

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

Reference no: EM131754249

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