Artis Sales has two store locations. Store A has fixed costs of $145,000 per month and a variable cost ratio of 60%. Store B has fixed costs of $260,000 per month and a variable cost ratio of 30%. What is the break-even sales volume for Store A?
Multiple Choice A)$362,500. B)$241,667. C)Cannot determine with the information given. D)$405,000.
Break-even point = Fixed cost / Contribution per unit |
= 145000/(1-0.6) |
362500 |
Contribution per unit = sales - variable cost = 100%-60% = 40% |
Ans option a 362500
Artis Sales has two store locations. Store A has fixed costs of $145,000 per month and...
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