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
b. $0
c. $200,000
d. $100,000