A company's contribution format income statement for last month is given below. $1,250,000 Sales (50,000 units X $25 per unit) Variable expenses Contribution margin Fixed expenses Net operating income 875,000 375,000 300,000 75,000 $ The company considers renovating its operations by purchasing a new machine that would reduce variable expenses by $7.50 per unit. However, fixed expenses would increase to a total of $675,000 each month. Using the new machine would not cause a change in monthly sales quantity or price per unit. What would the company's margin of safety in dollars be if it purchases and uses the new machine? Multiple Choice $125,000 $250,000 $1,000,000 a O $1,125,000