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

Question

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The Answer of 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.
A) Zero loss
B) $370,000 loss
C) $666,667 Loss
D) $800,000 loss

A Firm with 60 Percent of Sales Going to Variable