What is the margin of safety expressed

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Question - a. If Canace Company, with a break-even point at $483,800 of sales, has actual sales of $820,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales?

b. If the margin of safety for Canace Company was 40%, fixed costs were $1,418,400, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)

Reference no: EM133075063

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