Artis Sales Has Two Store Locations

question 38

Multiple Choice

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.

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Definitions:

Management By Exception

A management strategy where managers intervene only when performance deviates significantly from set standards.

Control Process

The control process is an essential part of management that involves monitoring performance, comparing it with goals, and taking corrective action as needed.

Performance Objectives

Specific goals that individuals or teams strive to achieve, often set to measure and improve effectiveness and efficiency.

Corrective Action

Measures taken to rectify a problem, defect, or deficiency in a process or a product to ensure that it meets its specifications and requirements.