1. Margin of Safety = Sales - Breakeven sales
= 610,000 - 341,600
= 268,400
2. 268,400/610,00
= 44%
B)
Breakeven sales = Fixed cost/Contribution margin ratio
= 1,533,600/(100-60)%
= 3,834,000
(Sales - Breakeven sales) /Sales = 40%
(Sales - 3,834,000) = 0.40 * Sales
Sales = 6,390,000
Margin of Safety a. If Canace Company, with a break-even point at $341,600 of sales, has...
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