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ABC Inc. manufactures and sells toys. Price and cost data are as follows: $28.00 $5.50 $6.00 $6.00 $3.50 Selling price per unit (package of 2

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ABC Inc. manufactures and sells toys. Price and cost data are as follows: $28.00 $5.50 $6.00 $6.00 $3.50 Selling price per unit (package of 2 CDs) Variable costs per unit: Direct material.... Direct labor. Artist's royalties. Manufacturing overhead. Selling expenses.................... Total variable costs per unit............... Annual fixed costs: Manufacturing overhead... .. .... .. ......................................... Selling and administrative.............................................................................. Total fixed costs... Forecasted annual sales volume (120,000 units)........... $2.00 $23.00 $170,000 $250,000 $420,000 $3,360,000 What is the firm's margin of safety? Select one: O a. 1,008,000 O b. 836,364 O c.750,000 O d. 1,065,763

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