Margin of Safety a. If Canace Company, with a break-even point at $236,000 of sales, has actual sales of $400,000, 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. 164,000 2. 41 b. If the margin of safety for Canace Company was 25%, fixed costs were $1,106,250, and variable costs were 75% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) F Check My W 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