Margin of Safetya. If Canace Company, with a break-even point at $386,900 of sales, has actual sales of $530,000, what is the margin of safety expressed (1) indollars 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 30%, fixed costs were $1,596,000, and variable costs were 70% of sales, what was theamount of actual sales (dollars)?(Hint: Determine the break-even in sales dollars first.)

a. 1. Calculate the margin of safety (in Dollars).

Answered: Margin of Safety a. If Canace Company,…

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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