The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year.

If Burkett Corporation achieves the budgeted level of sales, What will be its margin of safety?

Sales (50,000 units) $ 1,000,000

Costs:

Direct materials $ 270,000

Direct labor $ 240,000

Fixed factory overhead $ 100,000

Variable factory overhead $ 150,000

Fixed marketing costs $ 110,000

Variable marketing costs $ 50,000

Total cost $ 920,000

Income $ 80,000