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Historically, Electricity Has a $500,000 Fixed Component and 4% of Sales

Question 60

Multiple Choice

Historically, electricity has a $500,000 fixed component and 4% of sales variable component. Next year's sales are forecasted to be $10,000,000. The electricity budget would be


A) $1,000,000.
B) $750,000.
C) $1,200,00.
D) $900,000.

Correct Answer:

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