Answer:
the margin of safety in dollars is $1,236,200
Explanation:
The computation of the margin of safety in dollars is shown below:
= Total sales - break even sales
= (41,200 units - 32,370 units) × $140 per unit
= $1,236,200
We simply deduct the break even sales from the total sales so that the margin of safety in dollars come
Hence, the margin of safety in dollars is $1,236,200
