Q1) Molander Corporation is the distributor of sun umbrella utilized at resort hotels. Data concerning next month budget given below:
| Selling price |
$30 per unit |
| Variable expense |
$20 per unit |
| Fixed expense |
$7,500 per monyh |
| Unit sales |
1,000 units per month |
Questions:
1. Calculate company margin of safety.
2. Calculate company margin of safety as percentage of its sales.