Projected 20X1 annual data for Bobcat Company at a budgeted sales volume of 100,000

units,

and which manufactures and sells a single product, are shown in the table below.

	Per unit	Total	Percent of sales
Selling price	$30.00	$3,000,000	100%
Variable expenses	12.00	1,200,000	40%
Contribution margin	18.00	1,800,000	60%
Fixed expenses	7.20	720,000	24%
Operating income	$10.80	$1,080,000	36%

Completely independent to any other solutions you may have computed, assume that the reak-even point in dollars for Bobcat Company is $1,600,000.

Calculate the margin of safety in dollars for Bobcat Company at the 100,000 unit sales volume given in the table above.

A.

$1,600,000

B.

$1,400,000

C.

$880,000

D.

$2,000,000