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Artis Sales has two store locations. Store A has fixed costs of $149,000 per month and...

Artis Sales has two store locations. Store A has fixed costs of $149,000 per month and a variable cost ratio fo 60%. Store B has fixed costs of $216,000 per month and a variable cost ratio of 30%. What is the break even sales volume for Store B?

a. cannot determine with the information given

b. $308,571

c. $720,000

d. $365,000

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Answer #1

b.308,571.

break even sales volume of store B = fixed costs of store B / (1- variable cost ratio of store B)

=>216,000 / (1-0.30)

=>216,000 /0.70

=>$308,571.

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