A Firm with 60 Percent of Sales Going to Variable

question 96

Multiple Choice

A firm with 60 percent of sales going to variable costs,$1.5 million fixed costs,and $500,000 depreciation would show what accounting profit with sales of $3 million? Ignore taxes.

• A) Zero loss
• B) $370,000 loss
• C) $666,667 Loss
• D) $800,000 loss

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