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:

Clearinghouse Use

The process or function of a central agency or organization that collects, maintains, and distributes information or transactions, often for financial entities.

Medical Necessity

A legal and medical determination that a service or treatment is reasonably necessary for the diagnosis or treatment of illness or injury.

Insurance Carriers

Companies that provide insurance policies, offering protection against financial losses stemming from various risks.