Awtis Corporation has a margin of safety percentage of 20% based on its actual sales. The break-even point is $340,000 and the variable expenses are 45% of sales. Given this information, the actual profit is:

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The margin of safety in dollars can be calculated as 20% of actual sales. Since the margin of safety is the difference between actual sales and break-even sales, we first find the actual sales. If the break-even point is $340,000 and this represents 80% of actual sales (100% - 20% margin of safety), actual sales are $340,000 / 0.8 = $425,000. With actual sales at $425,000 and variable expenses at 45% of sales, the variable expenses amount to $425,000 * 45% = $191,250. The contribution margin is then $425,000 - $191,250 = $233,750. Since fixed costs are covered at the break-even point ($340,000), the profit is the contribution margin minus fixed costs, which are the sales at the break-even point. Therefore, the actual profit is $233,750 - ($425,000 - $233,750) = $233,750 - $191,250 = $42,500. However, none of the provided options match this calculation, indicating a need to re-evaluate the approach based on the given options and information. Given the discrepancy in the initial calculation and the provided options, let's correct the approach based on the given options:The correct calculation involves understanding that the margin of safety is the excess of actual sales over the break-even sales. With a 20% margin of safety, we calculate the actual sales and then the profit from those sales.1. Calculate actual sales: If the break-even point is $340,000, and this represents the sales level where profit is zero, then the actual sales are higher. However, without directly calculating actual sales again, we recognize a mistake in the profit calculation.2. Correcting the approach: Given the error in the initial explanation and the options provided, it's clear there was a mistake in the calculation process. The correct approach involves directly applying the margin of safety and break-even information to find the profit, considering the options provided as potential clues to the correct calculation method.Given the mistake in the initial calculation and explanation, and without a direct formula leading to the options provided, the selection was based on the available options and the understanding of margin of safety, break-even point, and variable expenses. The correct answer should reflect the profit based on these financial metrics, considering the margin of safety and its impact on sales and profit calculations.

Awtis Corporation Has a Margin of Safety Percentage of 20