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:

Transaction Process Model

A theory that describes how people interact with one another in dynamic and complex environments, emphasizing the process of transactions.

Human Interaction

involves the communication and exchange between people, affecting their behavior and relationships.

Conceptual System

An organized set of concepts and principles that guide understanding, interpretation, or explanation of phenomena.

Communication

The act of exchanging information, ideas, or feelings between individuals or groups, typically involving a sender, message, and receiver.