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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?

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Answer #1

Break even sales volume in dollar = $317,142.86 or $317,143

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A Variable cost ratio 30%
B=100%-30% Contribution margin ratio (100-30) 70%
C Fixed cost of store B $ 222,000
D=C/B Breakeven point in dollar sales $     317,142.86
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