Fixed Costs Including Depreciation Have Increased at Leverage, Inc $\rightarrow$ Variable Costs = 80%
New: = $20 Million
X =

question 111

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 Old: = $20 million
• \(\rightarrow\) Variable costs = 80%
• New: = $20 million
• X = 30%

---

Definitions:

Sensory Adaptation

The process by which sensitivity to stimuli decreases over time as an organism adapts to current conditions.

Perceptual Preferences

Individual differences in the ways people prefer to take in, process, and interpret sensory information from the world around them.

Sensory Systems

The parts of the nervous system that detect changes in the environment and transmit this information to the brain.

Supertaster

An individual who experiences taste with far greater intensity than the average person, due to having more taste buds.