Apple Enterprises Projects the Following for Next Year What Is the Firm's Margin of Safety in Revenue?
A)

question 73

Multiple Choice

Apple Enterprises projects the following for next year: $$\begin{array} { l l } \text { Sales } & \$ 300,000 \\\text { Fixed costs } & \$ 100,000 \\\text { After-tax profit } & \$ 12,000 \\\text { Tax rate } & 40 \%\end{array}$$ What is the firm's margin of safety in revenue?

• A) $200,000
• B) $20,000
• C) $188,000
• D) $50,000

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