Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars.
A. $2,200,000.
B. $2,000,000.
C. $1,560,000.
D. $2,460,000.
E. $2,895,652.
Answer: A
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