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Margin of Safety
a. If Canace Company, with a break-even point
at $608,000 of sales, has actual sales of $800,000, 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...