A) Required:
1. Using the equation method, determine for the unit sales that are required to earn a target profit of $8,450.
2. Using the formula method, determine for the unit sales that are required to earn a target profit of $9,700. (Round your answer to the nearest whole number.)
B) Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:
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Selling price
|
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$25
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per unit
|
|
Variable expenses
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$18
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per unit
|
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Fixed expenses
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$6,090
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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).