What is the margin of safety, expressed in units (to the nearest unit)?

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Quastir Co manufactures a single product which sells for $48.80 per unit. At this selling price, theprofitper unit is $5.35, after apportionment of the $65,000 of fixed costs. The budgeted production and sales volume is 20,000 units.

What is the margin of safety, expressed in units (to the nearest unit)?
A . 7,559
B . 7,850
C . 12,150
D . 12,441

Answer: D