Answer:
the correct option is A. $34,562
Explanation:
The computation of the margin of safety in sales dollars is shown below:
As we know that
Margin of safety = Actual sales - break even sales
where,
Actual sales units is 2,000
And, the break even sales is
= Fixed cost ÷ contribution margin per unit
= $6,000 ÷ ($22 - $8)
= $6,000 ÷ $14
= 429
Now margin of safety in dollars is
= (2,000 - 429) × $22
= $34,562
Hence, the correct option is A. $34,562
