Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
Wild Bear Corp. sells tents for $250. The company produced and sold 5,000 tents in 2010 and incurred the following costs:
Variable production cost per tent $125
Fixed production cost $195,000
Variable selling expense per tent $25
Fixed selling and administrative cost $135,000
The company had expected to sell 3,900 units in 2010. Wild Boar's tax rate is 30%.
-What was Wild Bear's margin of safety in dollars for 2010?

A) $ 90,000
B) $165,000
C) $275,000
D) $425,000
E) There was no margin of safety because Wild Bear sold fewer units than its BEP.