a. If Canace Company, with a break-even point at $248,400 of sales, has actual sales of $360,000, 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. 111,600$

2. 31%

b. If the margin of safety for Canace Company was 45%, fixed costs were $2,059,200, and variable costs were 55% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)