Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):

Sales $ 23,000

Variable expenses 13,000

Contribution margin 10,000

Fixed expenses 8,500

Net operating income $ 1,500

a. What is the margin of safety in dollars?

b. What is the margin of safety percentage?