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Problem - 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 $24
Variable expense per unit $17
Fixed expense per month $6,300
Unit sales per month 1,050
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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