Margin of Safety a. If Canace Company, with a break-even point at $463,600 of sales, has actual sales of $610,000, 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 30 %, fixed costs were $1,236,900, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) Previous Check My Work 2 more Check My Work uses remaining.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Margin of Safety
a. If Canace Company, with a break-even point at $463,600 of sales, has actual sales of $610,000, 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 30 %, fixed costs were $1,236,900, and variable costs were 70% of sales, what was the amount of actual sales (dollars)?
(Hint: Determine the break-even in sales dollars first.)
Previous
Check My Work
2 more Check My Work uses remaining.
Transcribed Image Text:Margin of Safety a. If Canace Company, with a break-even point at $463,600 of sales, has actual sales of $610,000, 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 30 %, fixed costs were $1,236,900, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) Previous Check My Work 2 more Check My Work uses remaining.
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