a. If Canace Company, with a break-even point at $461,500 of sales, has actual sales of $710,000, 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. 1. $fill in the blank 1 2. fill in the blank 2% b. If the margin of safety for Canace Company was 45%, fixed costs were $1,593,900, and variable costs were 55% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $fill in the blank 3
a. If Canace Company, with a break-even point at $461,500 of sales, has actual sales of $710,000, 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.
1. $fill in the blank 1
2. fill in the blank 2%
b. If the margin of safety for Canace Company was 45%, fixed costs were $1,593,900, and variable costs were 55% of sales, what was the amount of actual sales (dollars)?
(Hint: Determine the break-even in sales dollars first.)
$fill in the blank 3
Margin of safety:
A point after which profit will happen in the multiple of contribution margin ratio and increase in sales is called Margin of safety.
Formula:
Margin of safety = Total Sales - Total Break even sales
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