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Fixed Costs Including Depreciation Have Increased at Leverage Inc

Question 10

Multiple Choice

Fixed costs including depreciation have increased at Leverage Inc.,from $4 million to $5.3 million.Suppose that the company now breaks even on an accounting basis with sales of $20 million.What must be the break-even variable cost as a percentage of sales?


A) 69.2%
B) 65.8%
C) 73.5%
D) 76.7%

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