Acme Sales Has Two Store Locations

question 46

Multiple Choice

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%.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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