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Question(s) / Instruction(s):

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 expenses           $20         per unit

Fixed expenses                                $7,500   per month

Unit sales                           1,000     units per month


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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