Gospodin Grimshaw Limited manufactures hiking boots for sale which it sells principally in Russia and other parts of eastern Europe. Each pair of boots sells for £15. Variable costs are £5.50 per...

Gospodin Grimshaw Limited manufactures hiking boots for sale which it sells principally in Russia and other parts of eastern Europe. Each pair of boots sells for £15. Variable costs are £5.50 per pair. Fixed costs are budgeted at £87 900 for the 2013 financial year. The company expects to sell 15 000 pairs of boots in 2013. What is its margin of safety in £s (to the nearest £)?

a) £54 597

b) £86 205

c) £138 795

d) £62 520.