Accounting – If Armstrong Company, with a break-even point at $660,000 of sales

| January 31, 2017

Question
EX19-23

a. If Armstrong Company, with a break-even point at $660,000 of sales, has actual sales of $880,000, what is the mrgin of safety expressed (1) in dollars and (2) as a percent-age of sales?

b. If the margin of safety for Lankau Company was 25% fixed costs were $2,325,000, and variable costs were 60% of sales, what was the amount of actual sales (dollars)?

(Hint: Determine the break-even in sales dollars first.)

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