What Is the Maximum Percentage of Variable Costs to Sales

question 62

Multiple Choice

What is the maximum percentage of variable costs to sales that a firm could have and still break even with $5 million in revenues,$1 million in fixed costs,and $500,000 of depreciation?

• A) 30%
• B) 70%
• C) 80%
• D) 90%

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Definitions:

Endothelin

A potent vasoconstrictive peptide produced by vascular endothelial cells that regulates blood vessel tone and blood pressure.

Connective Tissue

Tissue that supports, connects, or separates different types of tissues and organs in the body, characterized by few cells and extensive extracellular matrix.

Erythrocytes

Red blood cells responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide from the tissues back to the lungs.

Leukocytes

Immune system components, white blood cells play a crucial role in defending the body against infectious diseases and external threats.