Margin of Safety If Fama Company, with a break-even point at $600,000 of sales, has actual sales of $750,000, what is the margin of safety expressed (1) in a. dollars and (2) percentage of sales? Round the percentage to the nearest whole number. as a 1. $ % 2. b. If the margin of safety for Watkins Company was 45%, fixed costs were $1,937,925, and variable costs were 55% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)