Calculate the Ratio of Variable-Costs-To-Sales for a Firm With: $3,000,000

question 87

Multiple Choice

Calculate the ratio of variable-costs-to-sales for a firm with: $3,000,000 accounting break-even revenues, $1.2 million fixed costs, and $450,000 depreciation.

• A)40 percent
• B)45 percent
• C)55 percent
• D)60 percent Break even =

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Definitions:

Preapproach

The planning and preparation process before direct contact with a potential customer, including gathering information and setting objectives for the sales call or meeting.

Team Selling

A sales approach where a group of salespeople work together to sell products or services to customers.

Supply Chain Personnel

Employees involved in managing the flow of goods, services, and information from the supplier to the customer.

Major Retailers

Large and influential retail businesses that operate on a national or international scale, typically dominating market sectors or industries.