Calculate the Ratio of Variable Costs to Sales for a Firm

question 18

Multiple Choice

Calculate the ratio of variable costs to sales for a firm with $3,000,000 accounting break-even revenues,$1.2 million fixed costs,and $450,000 depreciation.

• A) 40%
• B) 45%
• C) 55%
• D) 60%

Recognize the benefits and implications of vertical integration in supply chain management.

Analyze the impact of production constraints and overtime on company profits.

Appreciate the considerations involved in cost-plus pricing, including the absorption costing approach and its dependence on forecasted unit sales.

Evaluate the relevance of fixed and variable costs in pricing and special order decisions.

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