Margin of Safety a.  If Canace Company, with a break-even point at $631,800 of sales, has actual sales of $780,000, 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 $1,593,900, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)$

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Margin of Safety

a.  If Canace Company, with a break-even point at $631,800 of sales, has actual sales of $780,000, 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 $1,593,900, 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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