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