A. $35,000
B. $13,000
C. $5,000
D. $10,000
✅ The correct answer is option C.
Margin of safety = Budgeted revenue – Breakeven revenue
= $20000 – $15000 = $5,000.
Margin of safety = Budgeted revenue – Breakeven revenue
= $20000 – $15000 = $5,000.