What Is the Maximum Percentage of Variable Costs in Relation

question 113

Multiple Choice

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

• A) 30%
• B) 70%
• C) 80%
• D) 90%

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Definitions:

Masculine

Characteristics or traits traditionally associated with men or the male gender, but culturally defined and subject to change.

Organizations

Groups or entities that are structured and managed to meet specific goals or pursue a particular set of activities, often comprised of individuals working together.

Glass Ceiling

An unseen barrier that prevents certain individuals, often women and minorities, from advancing to higher levels within an organization or field.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, often to draw a comparative.