a. If Dunne Buggies Company, with a break-even point at $3,500,000 of sales, has actual sales of

Question:

a. If Dunne Buggies Company, with a break-even point at $3,500,000 of sales, has actual sales of $4,375,000, what is the margin of safety expressed
(1) In dollars
(2) As a percentage of sales?
b. If the margin of safety for Tri-City Company was 30%, fixed costs were $2,800,000 and variable costs were 75% of sales, what was the amount of actual sales (dollars)?