ABC Bread Sells a Box of Bagels with a Contribution

question 15

Multiple Choice

ABC Bread sells a box of bagels with a contribution margin of 62.5%.Its fixed costs are $150,000 per year.How much sales dollars does ABC Bread need to break-even per year if bagels are its only product?

• A)$93,750
• B)$150,000
• C)$240,000
• D)$90,000

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Definitions:

Chebyshev's Theorem

A statistical theorem stating that for any set of data, the proportion of results that fall within k standard deviations from the mean is at least 1-1/k^2 for k>1.

Empirical Rule

A rule that can be used to compute the percentage of data values that must be within one, two, and three standard deviations of the mean for data that exhibit a bell-shaped distribution.

Sample Space

The entire set of possible outcomes in a probability experiment or situation.

Sample Point

A single outcome from a statistical experiment.