Use the Following Information to Answer Question

Multiple Choice

Use the following information to answer question
Newfoundland Inc. budgeted the sale of 4,000 cabinets for 2010, but only sold 3,500 in that year. Selling price per unit is $245, variable production cost is $125 per unit, variable selling expense is $15 per unit, and fixed costs are $336,000 for the year. The company's tax rate is 35%.
-The margin of safety in units for 2010 is

A) 300.
B) 700.
C) 800.
D) 1,200.
E) 3,200.