Been at this for an hour! Please explain and answer.
a. If Steele Company, with a break-even point at $378,000 of sales, has actual sales of $540,000, 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 Kramer Company was 20%, fixed costs were $900,000, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $