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Fixed Costs Including Depreciation Have Increased at Leverage, Inc

Question 115

Multiple Choice

Fixed costs including depreciation have increased at Leverage, Inc.from $4 million to $6 million in an effort to reduce variable costs.What must the new variable-cost percentage be to leave break-even at $20 million?


A) 60 percent
B) 65 percent
C) 70 percent
D) 75 percent

Correct Answer:

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