Q1) Molander Corporation is the distributor of sun umbrella utilized at resort hotels. Data concerning next month budget given below:
Selling price |
$30 per unit |
Variable expense |
$20 per unit |
Fixed expense |
$7,500 per monyh |
Unit sales |
1,000 units per month |
Questions:
1. Calculate company margin of safety.
2. Calculate company margin of safety as percentage of its sales.