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Artis Sales Has Two Store Locations

Question 38

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%.
-At what sales volume would the two stores have equal profits or losses?


A) $250,000.
B) $325,000.
C) $361,111.
D) Cannot determine with the information given.

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