How Much Depreciation Expense Exists in a Firm That Has

question 126

Multiple Choice

How much depreciation expense exists in a firm that has a break-even level of revenues of $2 million, fixed costs of $400,000, and a 60 percent ratio of variable costs to sales?

• A)$144,000
• B)$266,667
• C)$400,000
• D)$666,667

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Definitions:

Foramen Ovale

An opening in the septum between the two upper chambers of the heart (atria) that is present in the fetus but normally closes shortly after birth.

Fetal Development

The process of growth and maturation of a fetus inside a woman's uterus from conception to birth.

Left Atria

The left atria is one of the four chambers of the heart, receiving oxygenated blood from the lungs and pumping it into the left ventricle.

Progesterone

A hormone produced in the ovaries, placenta, and adrenal glands that plays a key role in the menstrual cycle, pregnancy, and embryogenesis.