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A Firm with 60 Percent of Sales Going to Variable

Question 57

Multiple Choice

A firm with 60 percent of sales going to variable costs, $1.5 million fixed costs, and $500,000 depreciation would show what accounting profit with sales of $3 million? Ignore taxes.(use the values in dollar)


A) Zero loss
B) $370,000 loss
C) $666,667 Loss
D) $800,000 loss

Correct Answer:

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