Garbage Solutions Limited makes wheelie bins. In the 2013 financial year each bin will sell to local authorities for £25, with variable labour costs of £3.20 per bin and variable raw materials costs...

Garbage Solutions Limited makes wheelie bins. In the 2013 financial year each bin will sell to local authorities for £25, with variable labour costs of £3.20 per bin and variable raw materials costs of £4.20. Fixed costs are budgeted at £178 900. The company’s directors have budgeted net profit of £83 150 in 2013.

What is the company’s margin of safety in units (to the nearest whole unit)?

a) 10 165

b) 9 448

c) 5 441

d) 4 724.