a. If Canace Company, with a break-even point at $448,000 of sales, has actual sales of $800,000, 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.

b. If the margin of safety for Canace Company was 25%, fixed costs were $1,436,250, and variable costs were 75% of sales, what was the amount of actual sales (dollars)?
(Hint: Determine the break-even in sales dollars first.)

Answer rating: 100% (QA)

a b margin of safety in Dollars margin of safety in pel centage co... View the full answer