Fixed Costs Including Depreciation Have Increased at Leverage,Inc

question 87

Multiple Choice

Fixed costs including depreciation have increased at Leverage,Inc.from $4 million to $6 million in an effort to reduce variable costs.What must the new variable cost percentage be to leave break-even at $20 million?

• A) 60%
• B) 65%
• C) 70%
• D) 75%

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Definitions:

Parental Role

The responsibilities, behaviors, and duties associated with being a parent, including nurturing, protecting, and educating children.

Expensive Toys

Refers to toys that are priced at a premium, often due to brand, technology, design complexity, or materials used, which can impact accessibility for all children.

Open Adoption

An adoption process where the biological and adoptive families have access to varying degrees of each other's personal information and have an option of contact.

Birth Mother

The biological mother of a child, as opposed to an adoptive mother or stepmother.