a. If Canace Company, with a break-even point at $663,600 of sales, has actual sales of $790,000, 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.

Salary (Gross) = $66,000 per week ($440 per employee/week)

Total Tax = $22,341

Actual Direct Deposit for Payroll for first week of January = $66,000 - $22,341

= $43,659

Explanation:

No of employees = 150

Number of hours per week = 40hrs

earning per hour = $11

Total Salary earning for all employees = 150 * 40 * 11 = $66,000

Federal Income Tax = 15%

$66,000 * 0.15 = $9,900

State income tax = 5%

$66,000 * 0.05 = $3,300

FICA tax = 7.65%

$66,000 * 0.0765 = $5,049

Unemployment tax = 6.2%

$66,000 * 0.062 = $4092

Total Taxes = $(9900+3300+5049+4092)

= $22,341