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Question - Rival appliances had the following revenues over the past five years:
2019: $600,000
2020: $700,000
2021: $900,000
2022: $800,000
2023: $1,000,000
To predict revenues for 2024, Rival Appliances uses the average for the past five years. The company's breakeven revenue is $600,000 per year. What is Rival Appliances' predicted margin of safety for 2024?
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