a. If Canace Company, with a break-even point at $345,600 of sales, has actual sales of $540,000, 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. 194,400 2. 36 % b. If the margin of safety for Canace Company was 45%, fixed costs were $1,613,700, and variable costs were 55% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)