Margin of Safety a. If Canace Company, with a break-even point at $464,000 of sales, has actual sales of $580,000, 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. $ 2. b. If the margin of safety for Canace Company was 40%, fixed costs were $1,771,200, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)
Margin of Safety a. If Canace Company, with a break-even point at $464,000 of sales, has actual sales of $580,000, 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. $ 2. b. If the margin of safety for Canace Company was 40%, fixed costs were $1,771,200, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23E
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Margin of Safety
![Margin of Safety
a. If Canace Company, with a break-even point at $464,000 of sales, has actual sales of $580,000, 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. $
2.
%
b. If the margin of safety for Canace Company was 40%, fixed costs were $1,771,200, and variable costs were 60% of sales, what was the amount of actual sales (dollars)?
(Hint: Determine the break-even in sales dollars first.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4075dd7b-7cf0-4080-a9ab-c20ff4793850%2F1949519f-c3c8-43cf-a70a-a0e2d5f9c9e9%2Fsheoag8_processed.png&w=3840&q=75)
Transcribed Image Text:Margin of Safety
a. If Canace Company, with a break-even point at $464,000 of sales, has actual sales of $580,000, 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. $
2.
%
b. If the margin of safety for Canace Company was 40%, fixed costs were $1,771,200, and variable costs were 60% of sales, what was the amount of actual sales (dollars)?
(Hint: Determine the break-even in sales dollars first.)
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