Question: 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

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


Step by Step Solution

3.32 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style45 msonumberformat00220022 00000220022 00000220022 00220022 msostylenameCurrency msostyleid4 style0 msonumberformatGenera... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Excel file Icon

68-B-A-F-A (377).xlsx

300 KBs Excel File

Students Have Also Explored These Related Accounting Questions!