Compute the companys margin of safety

Assignment Help Financial Accounting

Reference no: EM131261506

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price $27 per unit Variable expenses $13 per unit Fixed expenses $11,200 per month Unit sales 950 units per month

1. Compute the company’s margin of safety.

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: EM131261506

Questions Cloud

Compute Dows earnings per share for the year ended : On December 31, 2015, Dow Steel Corporation had 790,000 shares of common stock and 49,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. Compute Dow's earnings per share for the year ended December 31, 2016.

Warranties and loss contingencies : (Warranties and Loss Contingencies) The following two independent situations involve loss contingencies. Part 1: Benson Company sells two products, Grey and Yellow. Each carries a 1-year warranty. 1.Product Grey—Product warranty costs, based on past ..

No journal entry required in the first account field : Prepare the journal entry, if any, required to record each of the initial business activities on September 1. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Prepare the adjusting jour..

Calculate the amount of goodwill or gain that resulted : On January 1, 2016 Gearty Corporation acquired 100% of Olinto Corporation. Gearty Corp. paid $760,000 for the acquisition of all of Olinto’s stock. On the date of acquisition Olinto’s assets and liabilities equaled their book value except for land an..

Compute the companys margin of safety : Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price $27 per unit Variable expenses $13 per unit Fixed expenses $11,200 per month Unit sales 950 units per m..

Every single change in estimates is material : Could you please research and explain if every single change in Estimates is material? Would you provide an explanation to those changes with examples? Be specific in providing your explanation.

What amount does perla report as equity in net income : Perla Company acquires 40% of the voting stock of Stanton Corporation for $8,000,000 on January 1, 2016. At the time, the book value of Stanton was $20,000,000. During 2016, Stanton reported net income of $2,500,000 and paid dividends of $600,000. Wh..

Determine the underapplied or overapplied overhead for year : Durham Company uses a job-order costing system. The following transactions took place last year: Insurance costs incurred, $4,400 (70% relates to factory operations, and 30% relates to selling and administrative activities). Miscellaneous selling an..

Compute the amount of depletion expense : Heath Mining Company acquired a mine in 2016. Capitalized costs of the minerals were $6,000,000. The company mined 260,000 tons of ore in 2016 and on December 31, 2016, it is estimated that 3,000,000 tons of ore remained in the ground. Compute the am..

User Account

All Pages