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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Definitions:

Mass Marketing

A marketing strategy that aims to appeal to a large, general audience through the use of widespread media and communication channels.

Mass Production

The manufacturing of large quantities of standardized products, often using assembly lines or automated technology, to achieve economies of scale.

Mass Marketing

A marketing strategy that aims to appeal to a broad range of consumers by reaching out to large audiences with a uniform message.

Target Marketing

The process of identifying and focusing marketing efforts on a specific segment of the market that is most likely to purchase a product or service.