The cost function for Ciao Company is: TC = $800 + 0.375 × Revenue. If Ciao expects after-tax income of $600, and the tax rate is 40%, what is the firm's margin of safety?
A) $3,680
B) $2,400
C) $2,880
D) $1,600

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The Answer of The cost function for Ciao Company is: TC = $800 + 0.375 × Revenue. If Ciao expects after-tax income of $600, and the tax rate is 40%, what is the firm's margin of safety?
A) $3,680
B) $2,400
C) $2,880
D) $1,600

The Cost Function for Ciao Company Is: TC = $800