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