a. If Larker Company, with a break-even point at $450,000 of sales, has actual sales of $500,000,

Question:

a. If Larker Company, with a break-even point at $450,000 of sales, has actual sales of $500,000, what is the margin of safety expressed
(1) In dollars and
(2) As a percentage of sales?
b. If the margin of safety for Porter Company was 20%, fixed costs were $600,000, and variable costs were 70% of sales, what was the amount of actual sales (dollars)?