Liu Sales has two store locations. Sanford has fixed costs of $159,000 per month and a contribution margin ratio of 35%. Orlando has fixed costs of $360,000 per month and a contribution margin ratio of 65%. At what sales volume would the two stores have equal profits or losses?

Multiple Choice

• $670,000.

• $519,000.

• $1,390,000.

• Cannot determine with the information given.