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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
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