? ignment/takeAssignment Maindoinvoker·assignments&takeAssignmentSessionLocator;

Question

? ignment/takeAssignment Maindoinvoker·assignments&takeAssignmentSessionLocator; assignment take∈ eBook Show Me How Calculator Margin of Safety a. If Canace Company, with a break-even point at $473,100 of sales, has actual sales of $570,000, 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. $ 96,900 2. 17% b. If the margin of safety for Canace Company was 25%, fixed costs were $1,087,500, and variable costs were 75% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) 543,750X Feedback Check My Work a. (Sales minus sales at break-even) divided by sales equals margin of safety b. Sales minus variable costs equals contribution margin. Fixed costs divided by unit contribution margin equals break-even point. (Sales minus sales at break-even) divided by sales equals margin of safety. Check My Work Next Email Instructor Save and Exit Submit Assignment for Grading

Explanation / Answer

Break even sales = Fixed cost / Contribution margin

= 1087500 / (1-75%) = 4350000

(Sales - Break even sales) / Sales = 25%(margin of safety)

Sales = 5800000

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.