Cubie Corporation has provided the following data concerning its only product:

Cubie Corporation has provided the following data concerning its only product:

Selling price	$	97	per unit
Current sales		10,300	units
Break-even sales		8,961	units

What is the margin of safety in dollars?

Multiple Choice

• $756,219
• $999,100
• $129,883

  Correct
• $869,217

Explanation

Margin of safety in dollars = Total sales – Break-even sales

= (10,300 units × $97 per unit) – (8,961 units × $97 per unit)

= $999,100 – $869,217 = $129,883