Acme Sales Has Two Store Locations

question 65

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 A?

• A)$208,333.
• B)$312,500.
• C)$325,000.
• D)Cannot determine with the information given.

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Definitions:

Magnification

The process of enlarging the appearance of an object using optical instruments like lenses or microscopes.

Adjustment Knobs

Controls on a microscope used to focus the image by moving the stage or the optics closer to or farther from the specimen.

Objective Lens

The lens in a microscope closest to the specimen, which collects light and focuses the image into the eyepiece.

Fine Adjustment Knob

A control knob on microscopes used to make precise adjustments to the focus of the specimen being viewed.