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:

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