Margin of Safety a. If Canace Company, with a break-even point at $313,500 of sales, has actual sales of $570,000, 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. $256,500 2. 45 % b. If the margin of safety for Canace Company was 45%, fixed costs were $1,811,700, and variable costs were 55% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $ 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.

a. If Canace Company, with a break-even point at $313,500 of sales, has actual soles of $570,000, 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. 5 2. % b. If the margin of safety for Canace Company was 45%, fixed costs were $1,811,700, and variable costs were 55% of sales, what was the amount of actual sales (dollars)? (Hint: Dotermine the break-even in sales dollars first.) reedtonk TCheck 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 ot break-even) divided by sales equals margin of safety