Serrato Manufacturing Company had the following projected information for 2021. Serrato expects to produce and sell 10,870 units. The costs expected to be incurred include: direct labor of $10.55/unit; direct materials of $5.45/unit; variable overhead of $18.00/unit; fixed overhead of $215,000; variable selling of $3.00/unit; fixed selling of $90,000; fixed administrative of $120,000. Each unit would sell for $80.00. Serratos tax rate is 40%.

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What is the margin of safety in sales dollars? (3 pts.)