What Is the Maximum Percentage of Variable Costs to Sales

question 62

Multiple Choice

What is the maximum percentage of variable costs to sales that a firm could have and still break even with $5 million in revenues,$1 million in fixed costs,and $500,000 of depreciation?

• A) 30%
• B) 70%
• C) 80%
• D) 90%

Understand and apply the principles of ratio and proportion to solve real-world problems.

Demonstrate proficiency in solving linear equations and systems of linear equations graphically.

Calculate percentages, including tax, discount, markup, and rate of change.

Allocate resources or distribute amounts in given ratios or according to specific rules.

---

Definitions:

Capital

Financial assets or the value of assets owned by a business, used in producing goods or services or invested to generate income.