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