Garfield Corporation Is Considering Building a New Plant in Canada

Garfield Corporation is considering building a new plant in Canada.It predicts sales at the new plant to be 50,000 units at $5.00/unit.Below is a listing of estimated expenses:

A Canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price.No U.S.home office expenses will be allocated to the new facility.
The margin of safety percentage for Duncan Enterprises is

A) 89.53%.
B) 35.71%.
C) 164.29%.
D) 64.29%.