Fixed Costs Including Depreciation Have Increased at Leverage, Inc $\rightarrow$ Variable Costs = 80%
New: = $20 Million
X =

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 Old: = $20 million
$\rightarrow$ Variable costs = 80%
New: = $20 million
X = 30%