The Mute's margin of safety (MOS) in sales dollars is: d. $54,290,602.
First step
Breakeven=$12,143,500/( $3,350-$1,480)/$3,350
Breakeven=$12,143,500/$1870/$3370
Breakeven=$12,143,500/0.5548961424332
Breakeven=$21,884,275
Second step
Margin of safety:
Margin of safety=(22,700×$3350)-$21,884,275
Margin of safety=$54,290,602
The correct option is D.
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