Margin of Safety a. If Canace Company, with a break-even point at $415,400 of sales, has actual sales of $620,000, 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. $ 204,600 2. 33 % b. If the margin of safety for Canace Company was 20%, fixed costs were $1,342,400, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) 13,424 x 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