Eusey company requires sales solution this accounting questions Eusey Company requires sales of $2,000,000 to cover its fixedcosts of $700,000 and to earn a net income of $500,000. Whatpercent are variable costs of sales?a. 40%b. 35%c. 60%d. 25%

Step 1: Define Variable CostVariable cost refers to that portion of total cost of a company that…

Answered: Eusey Company requires sales of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4BE

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The selling price of a product is $75.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $300,000, what are total fixed expenses? $80,000 $4,000 $300,000 $20

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Eusey Company requires sales of $2,000,000 to cover its fixed costs of $700,000 and to earn a net income of $500,000. What percent are variable costs of sales? a. 40% b. 35% c. 60% d. 25%