Solved

What Is the Maximum Percentage of Variable Costs in Relation

Question 13

Multiple Choice

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


A) 30 percent
B) 70 percent
C) 80 percent
D) 90 percent

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q6: The option to abandon a project becomes

Q17: What is the break-even level of revenues

Q21: The break-even level of sales represents the

Q25: A 4 year project is estimated to

Q26: Fixed costs:<br>A) are a constant percentage of

Q26: Which of the following offers the most

Q53: If the level of sales is less

Q53: Scenario analysis allows managers to look at

Q62: Why is managerial flexibility important in capital

Q86: According to decision-tree analysis, investment projects should