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What is the bests predicted margin of safety for 2012

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Reference no: EM13515363

The Best Appliances had the following revenue over the past five years:

2007

$ 600,000

2008

700,000

2009

900,000

2010

800,000

2011

1,000,000

To predict revenues for 2012, The Best uses the average for the past five years. The company's breakeven revenue is $800,000 per year. What is The Best's predicted margin of safety for 2012?

a. $800,000 c. $200,000

b. $0 d. $100,000

Reference no: EM13515363

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