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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 $29
Variable expense per unit $18
Fixed expense per month $9,350
Unit sales per month $1,000
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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Management has provided the following cost data for two levels of monthly sales volume
Calculate the net gross margin variance directly; then as a check see if it equals the sum of the three variance components you calculated
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