If fama company with a break-even point at 360000 of sales

Reference no: EM13605282

a. If Fama Company, with a break-even point at $360,000 of sales, has actual sales of $480,000, 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 Watkins Company was 25%, fixed costs were $1,200,000, and variable costs were 75% of sales, what was the amount of actual sales (dollars)?

Reference no: EM13605282

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