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Exercise 6-8 Compute the Margin of Safety [LO6-7] Molander Corporation is a distributor of a...

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Accounting

Exercise 6-8 Compute the Margin of Safety [LO6-7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next months budget appear below:

Selling price per unit $ 23
Variable expense per unit $ 15
Fixed expense per month $ 7,200
Unit sales per month 1,050

Required:

1. What is the companys margin of safety? (Do not round intermediate calculations.)

2. What is the companys margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)

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