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Margin of Safety a. If Canace Company, with a break-even point at $336,300 of sales,...

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Accounting

Margin of Safety

a. If Canace Company, with a break-even point at $336,300 of sales, has actual sales of $590,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number.

1. $

2. %

b. If the margin of safety for Canace Company was 25%, fixed costs were $1,621,875, and variable costswere 75% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $

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