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%

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Definitions:

Market Segments

Distinct groups of potential customers with similar needs, characteristics, or behaviors who are likely to respond in a similar way to a company's offerings.

Market-Product Grid

A tool used to identify and understand market segments and product offerings, facilitating strategic decisions.

Multiple Products

Offering a range of different goods or services within a business's portfolio to cater to various customer preferences or market segments.

Multiple Market Segments

The practice of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups with similar needs or characteristics.