Margin of safety a. If Kirwan Company, with a break-even point at $560,900 of sales, has...

Transcribed Image Text:

Margin of safety a. If Kirwan Company, with a break-even point at $560,900 of sales, has actual sales of $790,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? 1. $ 2. b. If the margin of safety for Kirwan Company was 25%, fixed costs were $1,411,875, and variable costs were 75% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) Margin of safety a. If Kirwan Company, with a break-even point at $560,900 of sales, has actual sales of $790,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? 1. $ 2. b. If the margin of safety for Kirwan Company was 25%, fixed costs were $1,411,875, and variable costs were 75% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)