Answer:
D. $ 2 comma 408
Explanation:
Margin of safety is the contribution over break-even point which make the profit for the business. It is the actual margin from which the business is safe from loss.
Sales Price = $3.44 per unit
Variable cost = 0.05 per unit
Break-even point = 3,600 per unit
Expected sale = 4,300 per unit
Margin of safety sales volume = Total Sales - Break-even point
Margin of safety sales volume = 4,300 - 3,600 = 700 units
Margin of Safety in dollars = 700 units x 3.44 = $2,408