Question
Appliances had the following revenue over the past fiveyears: 2009 $800,000 2010 $900,000 2011 $1,100,000 2012 $1,000,000 2013 $1,200,000 To predict revenues for 2014, Charlotte
Appliances had the following revenue over the past fiveyears:
2009
$800,000
2010
$900,000
2011
$1,100,000
2012
$1,000,000
2013
$1,200,000
To predict revenues for 2014, Charlotte Appliances uses the average for the past five years. Thecompany's breakeven revenue is $ 575,000 per year. What is Charlotte Appliances' predicted margin of safety for 2014
a. $575,000
b. $425,000
c. $100,000
d. $1,000,000
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
