Margin of Safety a. tf Canace Company, with a break-even point at $435,600 of sales, has actual sales of $660,000, 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. 225,000 x 2. 34 % b. If the margin of safety for Canace Company was 45%, fixed costs were $2,081,475, and variable costs were 55% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) 8,410,000 Feedback Clock 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 pont (Sales minus sales at break even) dded by sales equals margin of safety,