Margin of Safety a. If Del Rosario Company, with a break-even point at $453,600 of sales, has actual sales of $630,000, 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. 176,400 28 % b. If the margin of safety for Del Rosario Company was 30%, fixed costs were $1,436,400, and variable costs were 70% 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.