The Following Is Last Month's Contribution Format Income Statement What Is the Company's Margin of Safety Percentage,rounded to the \text

The following is last month's contribution format income statement:
$\begin{array}{|l|r|}\hline \text { Sales }(12,000 \text { units) } & \$ 1,200,000 \\\hline \text { Less: variable expenses } & \underline{700,000} \\\hline \text { Contribution margin } & 500,000 \\\hline \text { Less: fixed expenses } & \underline{300,000} \\\hline \text { Operating income } & \$ 200,000 \\\hline\end{array}$
What is the company's margin of safety percentage,rounded to the nearest whole percent?

A) 42%.
B) 40%.
C) 17%.
D) 20%.