What is the margin of safety expressed in dollars

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Reference no: EM132006196

a. If Canace Company, with a break-even point at $252,000 of sales, has actual sales of $400,000, 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. %

b. If the margin of safety for Canace Company was 45%, fixed costs were $1,777,050, and variable costswere 55% of sales, what was the amount of actual sales (dollars)?

(Hint: Determine the break-even in sales dollars first.)

Reference no: EM132006196

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