Acme Sales has two store locations.Store A has fixed costs of $125,000 per month and a variable cost ratio of 60%.Store B has fixed costs of $200,000 per month and a variable cost ratio of 30%.At what sales volume would the two stores have equal profits?
A)$250,000
B)$325,000
C)$361,111
D)Cannot determine with the information given.

Question

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The Answer of Acme Sales has two store locations.Store A has fixed costs of $125,000 per month and a variable cost ratio of 60%.Store B has fixed costs of $200,000 per month and a variable cost ratio of 30%.At what sales volume would the two stores have equal profits?
A)$250,000
B)$325,000
C)$361,111
D)Cannot determine with the information given.

Acme Sales Has Two Store Locations