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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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