Use the Following Information to Determine the Margin of Safety

Multiple Choice

Use the following information to determine the margin of safety in dollars: $\begin{array} { l c } \text { Unit sales } & 50,000 \text { Units } \\\text { Dollar sales } & \$ 500,000 \\\text { Fixed costs } & \$ 204,000 \\\text { Variable costs } & \$ 187,500\end{array}$

A) $173,600.
B) $500,000.
C) $108,500.
D) $88,500.
E) $326,400.