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:

Differentiation

The process of distinguishing or becoming distinct in terms of identity, characteristics, or functionality.

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A pattern of growth where development begins at the head and progresses downwards toward the feet.

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A condition in which a person does not ingest adequate amounts of protein, which can lead to health problems such as muscle loss and impaired immunity.