How Much Depreciation Expense Exists in a Firm That Has

question 21

Multiple Choice

How much depreciation expense exists in a firm that has a break-even level of revenues of $2 million,fixed costs of $400,000,and a 60% ratio of variable costs to sales?

• A) $144,000
• B) $266,667
• C) $400,000
• D) $666,667

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