Problem
Margin of Safety a. If Fama Company, with a break-even point at $326, 400 of sales, has actual sales of $510,000, 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. If the margin of safety for Watkins Company was 20%, fixed costs were $979, 200, and variable costs were 80% of sales, what was the amount of actual sales (dollars)?