What Is the Maximum Percentage of Variable Costs in Relation

question 13

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?

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

---

Definitions:

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment, often prioritizing short-term rewards over long-term outcomes.

Competitive Occupations

Jobs or careers where individuals or organizations compete against others for resources, recognition, or achievement.

Subjective Conscious Experience

Individual perception and personal awareness of feelings, thoughts, and sensations, unique to each person.

Anxiety-Arousing

Describes stimuli or situations that elicit feelings of anxiety, fear, or stress.