Ask Me Help Desk - Accounting Break Even Dollar Sales Question Need Help

slo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):

Sales $ 22,100

Variable expenses 12,700

Contribution margin 9,400

Fixed expenses 7,708

Net operating income $ 1,692

Question : What is the margin of safety in dollars?

MY WORK : I took the sales of $22,100 and I subtracted the break even sales at 820 units (break even point in unit sales which was marked correct for me) of $18,124 ( break even dollar sales which was marked correct for me) and I got $3976 which was marked wrong. I tried rounding up to $3980 but this was marked incorrect. I want to also say that I got the margin of safety percentage correct which I obtained by taking 3976 and dividing it by 22,100 sales to get 18%.


Sales	$	22,100
Variable expenses		12,700

Contribution margin		9,400
Fixed expenses		7,708

Net operating income	$	1,692

Question : What is the margin of safety in dollars? MY WORK : I took the sales of $22,100 and I subtracted the break even sales at 820 units (break even point in unit sales which was marked correct for me) of $18,124 ( break even dollar sales which was marked correct for me) and I got $3976 which was marked wrong. I tried rounding up to $3980 but this was marked incorrect. I want to also say that I got the margin of safety percentage correct which I obtained by taking 3976 and dividing it by 22,100 sales to get 18%.