Sheridan Company estimates that variable costs will be 65.00% of sales, and fixed costs will total $434,000. The selling price of the product is $4. Sheridan Company estimates that variable costs will be 65,00% of sales, and fixed costs will total $434,000. The selling price of the product is $4. (a) Your answer is correct. Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales \$ suming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. Margin of safety Margin of safety ratio %