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" Customer discounts (c) I, Il, and Ill Leaning Objective: Describe the assumptions and limitations that managers consider when using CVP analysis 2 The ottu tion for Ciao Company is TC.S00 + 0.375 Revenue." so expects after tax ino m e of $60 Cm and the tax rate is 40%, what is the firm's margin of safety? $1,600 Objective: Assess operational risk using margin of safety and operating leverage Terry's Donut Shop had the following activity for December al donuts sold 17,000 C-35 o otal revenues $595,000 Total fixed costs 99,000 Total variable costs 357,000 What was Terry's margin of safety, in dollars? (c) $347,500 Leaming Objective: Assess operational risk using margin of safety and operating leverage