Answer:
$114,320
Explanation:
The computation is shown below:
The margin of safety equals to
= (Expected sales units - break even sales units) × Selling price per unit
where,
expected sales units = 4,329 units
Break even sales units = 2,900 units
And, the selling price per units is $80 each
So, the margin of safety in dollars is
= (4,329 units - 2,900 units) × $80
= 1,429 units × $80
= $114,320
This is the answer but the same is not provided in the given options
