What Is the Maximum Percentage of Variable Costs in Relation

question 106

Multiple Choice

What is the maximum percentage of variable costs in relation to sales that a firm could experience and still break even with $5 million revenue, $1 million fixed costs, and $500,000 depreciation? (use the values in dollar)

• A)30 percent
• B)70 percent
• C)80 percent
• D)90 percent

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Definitions:

Creative

The ability or power to generate new ideas, concepts, or processes that are often considered unique or innovative.

Inheritance

The transmission of genetic information from parents to offspring, or the reception of traits, property, or titles by legal succession or will.

Personality

The unique combination of emotional, attitudinal, and behavioral response patterns of an individual.

Cattell

A reference to Raymond Cattell, a psychologist known for his work in personality theory, including the development of the 16 personality factor model.