Calculate the Ratio of Variable Costs to Sales for a Firm

question 22

Multiple Choice

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

• A) 40%
• B) 45%
• C) 55%
• D) 60%

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Definitions:

Birds

Warm-blooded vertebrates with feathers, capable of flight, with a beak but no teeth, laying hard-shelled eggs.

Fishes

Aquatic, gill-bearing animals that lack limbs with digits, often covered in scales, and residing in both freshwater and saltwater environments.

Flatworm

A group of simple invertebrates known for their flat bodies, including both free-living and parasitic species like tapeworms.