2. Margin of Safety

a. If Del Rosario Company, with a break-even point at $218,400 of sales, has actual sales of $390,000, 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. $fill in the blank 1

2. fill in the blank 2%

b. If the margin of safety for Del Rosario Company was 30%, fixed costs were $1,600,200, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $fill in the blank 3