What is the company margin of safety

Assignment Help Accounting Basics
Reference no: EM133091121

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 $25

Variable expense per unit $13

Fixed expense per month $10,080

Unit sales per month 990

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: EM133091121

Questions Cloud

Estimate the WACC : If Treasury bill rate was 2.5%, the current yield-to-maturity of the company's bond was 5.0% and the coupon rate of the company's bond was 3%. Estimate the WACC
Can Simon unilaterally elect to have S election terminated : Simon wants to terminate the S election, but Theodore and Alvin disagree. Can Simon unilaterally elect to have the S election terminated
Conflict Resolution : How does culture impact conflict? Explain. Explain why you prefer this style to the other conflict resolution styles.
What is the prospective rate of return after taxes : What is the prospective rate of return after taxes if straight line depreciation can be used to write off this asset for the tax purposes in 9 years
What is the company margin of safety : Molander Corporation is a distributor of a sun umbrella used at resort hotels. What is the company margin of safety
Obstacles to organizational change : Describe organizational obstacles and the challenges for managers. Explain how these obstacles bring additional challenges for managers.
Prepare a statement of income under USAR for Country Bistro : Prepare a statement of income under USAR for Country Bistro to determine operating income, including percentages
Demonstrating your understanding of the child : Demonstrating your understanding of the child as capable and competent and Illustrate each descriptor by writing two examples.
What is the inventory balance that coldstone would report : The retail price index at the end of 2021 was 1.05. What is the inventory balance that Coldstone would report in its 12/31/2021 balance sheet

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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