contestada

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 $ 27 Variable expense per unit $ 13 Fixed expense per month $ 12,460 Unit sales per month 1,040 Required: 1. What is the company’s margin of safety?

Respuesta :

TomShelby

Answer:

Margin of safety in units 1040 - 890 = 150

Margin of safety in dollars 28,080 - 24,030 = 4050

Margin of safety as % of sales 4050 / 28,080 = 14.4231%

Explanation:

[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]

27 - 13 = 14

[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]

12460 / 14 = 890

[tex]BEP_{units} \times unit \: sales \: price = BEP_{dolars}[/tex]

890 * 27 = 24,030

[tex]units sold \times unit \: sales \: price = Sales Revenue[/tex]

1,040 * 27 = 28,080

[tex]units \:sold - BEP_{units[/tex]

Margin of safety in units 1040 - 890 = 150

[tex]current \:sales - BEP_{USD}[/tex]

Margin of safety in dollars 28,080 - 24,030 = 4050

[tex]\frac{current \:sales - BEP_{USD}}{current \:sales} \times 100 = margin \: of \: safety[/tex]

Margin of safety as % of sales 4050 / 28,080 = 14.4231%

Otras preguntas