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Acme Sales Has Two Store Locations

Question 46

Multiple Choice

Acme 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 B?


A) $666,667.
B) $325,000.
C) $285,714.
D) Cannot determine with the information given.

Correct Answer:

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