Victoria Company reports the following operating results for the month of April.

VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020
		Total		Per Unit
Sales (10,000 units)		$500,000		$50
Variable costs		300,000		30.00
Contribution margin		200,000		$20.00
Fixed expenses		140,000
Net income		$60,000

Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 10%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places e.g. 0.2522 and final answer to 0 decimal places, e.g. 2,510.) (a) Assuming no changes to selling price or costs.(a) Assuming no changes to selling price or costs.

Break-even point		Enter a number of units	7000 units
Break-even point		$Enter a dollar amount	350,000
Margin of safety		$Enter a dollar amount	150,000

(b1) Assuming changes to sales price and volume as described above.

Break-even point		Enter a number of units	8000 units
Break-even point		$Enter a dollar amount	380,000
Margin of safety		$Enter a dollar amount

What is the Margin of Safety?