Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Best Appliances had the following revenue over the past 5 years: 2011- $900,000 2012- $1,100,000 2013- $1,300,000 2014- $1,300,000 2015- $1,400,000 To predict revenues for

Best Appliances had the following revenue over the past 5 years:

2011- $900,000

2012- $1,100,000

2013- $1,300,000

2014- $1,300,000

2015- $1,400,000

To predict revenues for 2016, they use the average for the past 5 years. The company's breakeven revenue is $700,000 per year. What is the company's predicted margin of safety for 2016?

a) $700,000 b) $620,000 c) $600,000 d) $500,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

16th Global Edition

1292147989, 978-1292147987

More Books

Students also viewed these Accounting questions