Margin of Safety a. If Canace Company, with a break-even point at $386,900 of sales, has actual sales of $530,000, 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 30%, fixed costs were $1,596,000, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

Question
Margin of Safety
a. If Canace Company, with a break-even point at $386,900 of sales, has actual sales of $530,000, 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 30%, fixed costs were $1,596,000, and variable costs were 70% of sales, what was the
amount of actual sales (dollars)?
(Hint: Determine the break-even in sales dollars first.)

Image Transcription

Margin of Safety a. If Canace Company, with a break-even point at $386,900 of sales, has actual sales of $530,000, 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 30%, fixed costs were $1,596,000, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

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