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%

---

Definitions:

Arbitration

A method of dispute resolution where a neutral third party (the arbitrator) makes a decision that is usually binding on all parties involved.

Certification

The process of officially recognizing someone or something as having certain qualifications or standards.

Certification Process

A process under labour legislation whereby a trade union acquires bargaining rights and is designated as the exclusive bargaining representative of a unit of employees.

Bargaining Rights

The rights granted to entities, often unions, to negotiate the terms of employment, including wages and working conditions, on behalf of a group of employees.