ABC Inc. manufactures and sells toys. Price and cost data are as follows:

Selling price per unit (package of 2 CDs)......................................	$30.00
Variable costs per unit:
Direct material...............................................................................................................	$5.00
Direct labor......................................................................................................................	$6.00
Artist's royalties..............................................................................................................	$5.50
Manufacturing overhead..........................................................................................	$4.00
Selling expenses............................................................................................................	$2.30
Total variable costs per unit............................................................	$22.80
Annual fixed costs:
Manufacturing overhead..........................................................................................	$199,000
Selling and administrative.......................................................................................	$376,000
Total fixed costs................................................................................	$575,000
Forecasted annual sales volume (120,000 units).........................	$3,600,000

What is the firm's margin of safety?