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Question(s) / Instruction(s):

A company that makes organic fertilizer has supplied the following data:

Bags produced and sold                                         680,000

Sales revenue                                                       $4,352,000

Variable manufacturing expense                              $1,972,000

Fixed manufacturing expense                                    $730,000

Variable selling and administrative expense        $782,000

Fixed selling and administrative expense              $412,000

Net Operating income                                                   $456,000

The companys margin of safety in units is closest to:

a)            501,563 units

b)            194,043 units

c)            601,524 units

d)            471,429 units

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