Real Products Company
Real Products Company Produces and Sells a Single

Real Products Company
Real Products Company produces and sells a single product.Information on its costs follow:
$\begin{array}{l}\text { Variable costs: }\\\begin{array}{lr}\text { SG\&A } & \$ 2 \text { per unit } \\\text { Prochuction } & \$ 4 \text { per unit } \\\text { Fixed costs: } & \\\text { SG\&A } & \$ 12,000 \text { per year } \\\text { Prochuction } & \$ 15,000 \text { per year }\end{array}\end{array}$

Refer to Real Products Company.In the upcoming year,Real Products Company estimates that it will produce and sell 4,000 units.The variable costs per unit and the total fixed costs are expected to be the same as in the current year.However,it anticipates a sales price of $16 per unit.What is Real Products Company's projected margin of safety for the coming year?

A) $7,000
B) $20,800
C) $18,400
D) $13,000