SkyBucks Bagels Sells Boxes of Bagels Each with a Variable

question 14

Multiple Choice

SkyBucks Bagels sells boxes of bagels each with a variable cost of 45% of sales.Its fixed costs are $36,000 per year.Each box has a contribution margin of $8.How much sales revenue does SkyBucks need to break-even per year if bagels are its only product?

• A)$65,455
• B)$80,000
• C)$4,500
• D)$19,800

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Definitions:

Financial Accounting

The field of accounting focused on the summarization, analysis, and reporting of financial transactions pertaining to a business.

Decision Makers

Individuals or entities responsible for making choices after considering risks, benefits, and impacts, often in the context of businesses or organizations.

Percentage Depletion

A tax deduction method allowing businesses to account for the decrease of reserves in natural resources through a percentage of the revenue generated from those resources.