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makvit [3.9K]
3 years ago
12

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
Business
1 answer:
Softa [21]3 years ago
7 0

Answer:

$312,500

Explanation:

break-even sales = Fixed Cost ÷ Contribution margin ratio

                             =  $125,000 ÷ 40 %

                             = $312,500

the break-even sales volume for Store A is  $312,500

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