eBook Show Me How Calculator Margin of Safety a. If Canace Company, with a break-even point at $408,700 of sales, has actual sales of $670,000, 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. $261,300 2. 39 % b. If the margin of safety for Canace Company was 20%, fixed costs were $993,600, and variable costs were 80% of sales, what wa the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) Feedback Check My Work a. (Sales minus sales at break-even) divided by sales equals margin of safety b. Sales minus variable costs equals contribution margin. Fixed costs divided by unit contribution margin equals break-even point. (Sales minus sales at break-even) divided by sales equals margin of safety