Artis Sales Has Two Store Locations

question 151

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%.
-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.

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Definitions:

Anorexia

A psychological disorder characterized by an extreme reduction in body weight, acute fear of weight gain, and a warped perception of body dimensions or appearance.

Eating Disorder

A range of psychological disorders characterized by abnormal or disturbed eating habits, which can severely impact health and well-being.

Psychological Disorders

Disorders that involve abnormal thoughts, feelings, and behaviors, impairing the ability to function.

Anorexia Nervosa

An eating disorder marked by an intense fear of gaining weight and a distorted body image, leading to severe restriction of food intake and weight loss.