The following information pertains to Clove Co.:

Budgeted sales	$1,150,000
Breakeven sales	$  550,000
Budgeted contribution margin	$  450,000

Clove's margin of safety is:

	$800,000
→	$600,000
	$700,000
	$650,000

Margin of safety in dollars = Total budgeted sales - Break-even sales

= $1,150,000 - $550,000 = $600,000