The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year. If Griffith Corporation is able to achieve the budgeted level of sales, its margin of safety in dollars would be:

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

Costs:

Direct materials $270,000

Direct labor 240,000

Fixed factory overhead 139,980

Variable factory overhead 150,000

Fixed marketing costs 110,000

Variable marketing costs 50,000 95,980

Pretax income $ 40,020

A. $172,420 B. $138,000 C. $262,500 D. $275,862 E. $862,000.