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%.
-What is the break-even sales volume for Store B?
A) $666,667.
B) $325,000.
C) $285,714.
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%. 
-What is the break-even sales volume for Store B?
A) $666,667.
B) $325,000.
C) $285,714.
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%. 
-What is the break-even sales volume for Store B?
A) $666,667.
B) $325,000.
C) $285,714.
D) Cannot determine with the information given.

Artis Sales Has Two Store Locations