Fixed Costs Including Depreciation Have Increased at Leverage, Inc

question 115

Multiple Choice

Fixed costs including depreciation have increased at Leverage, Inc.from $4 million to $6 million in an effort to reduce variable costs.What must the new variable-cost percentage be to leave break-even at $20 million?

• A)60 percent
• B)65 percent
• C)70 percent
• D)75 percent

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Definitions:

Aversive Event

An unfavorable or unpleasant event or stimulus that an organism seeks to avoid or escape.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, comes to trigger a conditioned response.

Fear Reduction

The process of diminishing the emotional response to a feared stimulus, often through exposure or therapeutic interventions.

Nucleus Accumbens

A brain region involved in the reward circuitry, playing a central role in pleasure and reinforcement.