a. If Steele Company, with a break-even point at $378,000 of sales, has actual sales of $540,000,

Question:

a. If Steele Company, with a break-even point at $378,000 of sales, has actual sales of $540,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales?
b. If the margin of safety for Kramer Company was 20%, fixed costs were $900,000, and variable costs were 70% of sales, what was the amount of actual sales (dollars)?

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