A. 4500 units
B. 5500 units
C. 8500 units
D. 9500 units
✅ The correct answer is option B.
Margin of safety = Sales quantity – Breakeven quantity
= 7000 – 1500 = 5500 units.
Margin of safety = Sales quantity – Breakeven quantity
= 7000 – 1500 = 5500 units.