Get correct answer accounting questions Mason Company needs sales of $3,000,000 to cover its fixed costs of$900,000 and to earn a net income of $600,000. What percent arevariable costs of sales?a. 50%b. 45%c. 55%d. 40%

Step 1: Definition of Variable CostsVariable Costs are costs that change in direct proportion to the…

Answered: Mason Company needs sales of $3,000,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mason Company needs sales of $3,000,000 to cover its fixed costs of $900,000 and to earn a net income of $600,000. What percent are variable costs of sales? a. 50% b. 45% c. 55% d. 40%