The Blue Saints Band Is Holding a Concert in Toronto

Multiple Choice

The Blue Saints Band is holding a concert in Toronto. Fixed costs relating to staging a concert are $350,000. Variable costs per patron are $5.00. The selling price for a tickets $25.00. The Blue Saints Band has sold 23,000 tickets so far. At the current level of sales, what is the margin of safety in dollars?

A) $137,500
B) $87,500
C) $180,000
D) $115,000