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Review Ch.6

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:Selling price . . . . . . . $30 per unitVariable expense . . . $20 per unitFixed expense . . . . . $7,500 per monthUnit sales . . . . . . . . . 1,000 units per mont

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Review Ch.6

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    1. Review Ch.6 Cost-Volume-Profit Relationships

    2. Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price . . . . . . . $30 per unit Variable expense . . . $20 per unit Fixed expense . . . . . $7,500 per month Unit sales . . . . . . . . . 1,000 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.

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