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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.

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Answer #1
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

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