The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation achieves the budgeted level of sales, what will be its margin of safety in dollars? Sales (50,000 units) $1,000,000 Costs: Direct materials$270,000 Direct labor 240,000 Fixed factory overhead 100,000 Variable factory overhead 150,000 Fixed marketing costs 110,000 Variable marketing costs 50,000 920,000 Pretax income $80,000
A. $150,000.
B. $310,115.
C. $262,500.
D. $172,420.
E. $275,862.
Answer: E
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