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