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%

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Definitions:

Temporal Lobes

Regions of the brain located on either side of the head above the ears, involved in processing auditory information, memory, and integrating sensory input.

Implicit Memory

A form of memory where past experiences assist in accomplishing a task without the individual being consciously aware of these past experiences.

Explicit Memory

A type of long-term memory involving conscious recollection of factual information, previous experiences, and concepts.

Liability

A financial obligation or debt owed by a company to third parties, to be settled through the transfer of assets, provision of services, or other economic benefits.