a.If Canace Company, with abreak-even pointat $539,600 of sales, has actual sales of $710,000, 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 40%,fixed costswere $1,694,400, andvariable costswere 60% of sales, what was the amount of actual sales (dollars)?

(Hint:Determine the break-even in sales dollars first.)

$