HomeworkLib
Question

Artis Sales has two store locations. Store A has fixed costs of $190,000 per month and...

Artis Sales has two store locations. Store A has fixed costs of $190,000 per month and a variable cost ratio of 65%. Store B has fixed costs of $350,000 per month and a variable cost ratio of 40%. At what sales volume would the two stores have equal profits or losses?

$640,000.

$540,000.

$514,286.

Cannot determine with the information given.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer

Assume X=Sales Volume

(100% -65%) X - 190,000 = (100% -40%) X - $350,000

35%X - 190,000 = 60% X - $350,000

25%X =$160,000

X =$640,000

Answer: Option A: $640,000

0 0
Add a comment
Know the answer?
Add Answer to:
Artis Sales has two store locations. Store A has fixed costs of $190,000 per month and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Artis Sales has two store locations. Store A has fixed costs of $170,000 per month and...

    Artis Sales has two store locations. Store A has fixed costs of $170,000 per month and a varia 20%. At what sales volume would the two stores have equal profits or losses? $280,000 $480,000. O O $533,333 O Cannot determine with the information given. ©2020 McGraw-Hill Edu per month and a variable cost ratio of 70%. Store B has fixed costs of $310,000 per month and a varia sses? W-Hill Education. All rights reserved.

  • 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

  • Artis Sales has two store locations. Store A has fixed costs of $145,000 per month and...

    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.

  • 1. Artis Sales has two store locations. Store A has fixed costs of $210,000 per month...

    1. Artis Sales has two store locations. Store A has fixed costs of $210,000 per month and a variable cost ratio of 60%. Store B has fixed costs of $390,000 per month and a variable cost ratio of 30%. What is the break-even sales volume for Store A? 2.  Liu Sales has two store locations. Sanford has fixed costs of $169,000 per month and a contribution margin ratio of 30%. Orlando has fixed costs of $400,000 per month and a contribution...

  • Artis Sales has two store locations. Store A has fixed costs of $158,000 per month and...

    Artis Sales has two store locations. Store A has fixed costs of $158,000 per month and a variable cost ratio of 60%. Store B has fixed costs of $222,000 per month and a variable cost ratio of 30%. What is the break-even sales volume for Store B?

  • Liu Sales has two store locations. Sanford has fixed costs of $26,000 per month and a...

    Liu Sales has two store locations. Sanford has fixed costs of $26,000 per month and a contribution margin ratio of 35%. Orlando has fixed costs of $440,000 per month and a contribution margin ratio of 65%. At what sales volume would the two stores have equal profits or losses? a. cannot determine with the information given b. $700,000 c. $600,000 d. $1,480,000

  • The Biloxi Company has the following cost structure: fixed costs of $70,000 per month and variable...

    The Biloxi Company has the following cost structure: fixed costs of $70,000 per month and variable costs of $50 per unit. The Birmingham Company has the following cost structure: fixed costs of $60,000 per month and variable costs of $60 per unit. Both companies make the same product, which sells for $100 per unit. There is a sales level at which these two companies earn the same profits. What is that sales level? Which company is more profitable as sales...

  • A store will cost $925,000 to open. Variable costs will be 40% of sales and fixed...

    A store will cost $925,000 to open. Variable costs will be 40% of sales and fixed costs are $190,000 per year. The investment costs will be depreciated straight-line over the 17 year life of the store to a salvage value of zero. The opportunity cost of capital is 10% and the tax rate is 30%. The operating cash flow is $219,323.53 when sales revenue is $800,000 per year. Calculate the Net Present Value. Should the store be opened or not?

  • that there was a huge market for this attire, Maddie rented a store front and a...

    that there was a huge market for this attire, Maddie rented a store front and a silk screening machine to get into the t-shirt business. Maddie's rent is $1,000 a month, including utilities. The silk screen machine leases for $300 a month. Maddie can buy blank t-shirts for $6 each and sweatshirts for $10 each. Maddie calculated the cost of materials for the silk screening at $2 per unit. For pricing decisions, Maddie should consider her $300 lease on the...

  • The Virginia Company has fixed costs of $100,000 per month, and variable costs of $30 per...

    The Virginia Company has fixed costs of $100,000 per month, and variable costs of $30 per unit of output. The sales price is $50 per unit of output. How many units would the company have to sell per month, to generate profits of $30,000 per month?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT