Evaluate the company margin of safety

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Reference no: EM1311487

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.

Reference no: EM1311487

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