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Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next months budget appear below:
| | | | |
| Selling price | | $30 | per unit |
| Variable expenses | | $20 | per unit |
| Fixed expenses | | $7,500 | per month |
| Unit sales | | 1,000 | units per month |
| |
Required:
1. Compute the companys margin of safety.
2. Compute the companys margin of safety as a percentage of its sales.
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