Artis 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 or losses?
A) $250,000.
B) $325,000.
C) $361,111.
D) Cannot determine with the information given.

Question

Artis 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 or losses?
A) $250,000.
B) $325,000.
C) $361,111.
D) Cannot determine with the information given.

Quizplus · Accepted Answer

The Answer of Artis 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 or losses?
A) $250,000.
B) $325,000.
C) $361,111.
D) Cannot determine with the information given.

Artis Sales Has Two Store Locations