Artis Sales Has Two Store Locations

Multiple Choice

Artis Sales has two store locations. Store A has fixed costs of $125,000 per month and a variable cost ratio of 60%. Store B has fixed costs of $200,000 per month and a variable cost ratio of 30%. What is the break-even sales volume for Store A?

A) $208,333.
B) $312,500.
C) $325,000.
D) Cannot determine with the information given.