Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:
|
Selling price
|
|
$25
|
per unit
|
|
Variable expenses
|
|
$18
|
per unit
|
|
Fixed expenses
|
|
$6,090
|
per month
|
|
Unit sales
|
|
1,020
|
units per month
|
Required:
1. Compute the company's margin of safety.
2. Compute the company's margin of safety as a percentage of its sales. (Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).