What is the company margin of safety

Assignment Help Managerial Accounting
Reference no: EM133017733

Question - Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:

Selling price per unit $26

Variable expense per unit $16

Fixed expense per month $8,600

Unit sales per month 1,010

Required -

1. What is the company's margin of safety?

2. What is the company's margin of safety as a percentage of its sales?

Reference no: EM133017733

Questions Cloud

Create virtual hard drive : You can use the Disk Management tool or the diskpart command to create a virtual hard drive (VHD) on a physical computer.
Sketch the position diagram and explain what it means : Sketch the position diagram and explain what it means. Show all the key points on the diagram. Assume no dividends are paid by the share
Calculate the cash flow from operating activities : Calculate the cash flow from operating, investing and financing activities, and the net change in cash for Bronze Corporation based on below data
Privacy issues with data mining : What are the privacy issues with data mining? Do you think they are substantiated?
What is the company margin of safety : Molander Corporation is a distributor of a sun umbrella used at resort hotels. Fixed expense per month $8,600. What is the company margin of safety
How to disrupt craigslist : "How to Disrupt Craigslist". Why is it so difficult to disrupt Craigslist?
How much is the balance of allowance for impairment loss : How much is the balance of allowance for impairment loss on December 31, 2023 immediately after impairment testing
Recruiting methods : What are some recruiting methods you could use? What are some of the issues which must be taken into consideration in recruiting?
EHR Functionality : As the manager of the CTU Health Care information systems department, you are aware of the meaningful use core measure standards that all eligible professionals

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How changes affect the tax and economic result for mike

The partnership locates equivalent land that it purchases for $110,000.- How do these changes affect the tax and economic result for Mike and the partnership?

  What quantity of each product should they produce

Company A produces phones, monitors and calculators, with a selling price of $1000, $500, and $200. What quantity of each product should they produce

  Prepare the reversing entries

Prepare the reversing entries, where appropriate. Employee wages that have been earned by employees but are unpaid and unrecorded amount to $3,500.

  What abc system is and advantages over current system

What the ABC system is and its advantages over their current system. Include in your answer a definition of both cost center and cost driver.

  Would the firm break-even point increase or decrease

Would the firm break-even point increase or decrease if it made the change? Sandro Aero Inc. produces satellite earth stations that sells for RMIOO,OOO each.

  What conclusions do you make about the relevance of MAS

Holmes Institute, Australia - HI5017 Managerial Accounting Assignment. What conclusions do you make about the relevance of MAS

  Which effects of equal amount may also occur

A bookkeeper recorded wages for the month as a decrease to the Income account rather than as an increase to Wages Expense. This error will result in

  Relationship between revenue and variable costs

relationship between revenue and variable costs will not change but fixed cost will increase

  Compute what is the present value of the po mbs

Principal-Only MBS and Interest-Only MBS, What is the present value of the PO MBS if we use an annual risk-free rate of 4.5% to value the cash-flows?

  What are the trends on a common-size basis

What would be your next steps in completing a thorough analysis of the trends? Apple Inc. needs to perform trend analysis for the most recent four years

  Calculate the net present value of the investment

Seventeen Seconds, Inc. is considering a long-term investment. The investment will require an investment of $40,000. Calculate net present value of investment

  Determine the actual fixed overhead

Determine the actual fixed overhead, actual variable overhead, actual machine hours worked, standard machine hours allowed for actual production

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd