Salem Bakery Sells Boxes of Donuts Each with a Variable

question 23

Essay

Salem Bakery sells boxes of donuts each with a variable cost percentage of 35%. Its fixed costs are $54600 per year.
Instructions
Determine the sales dollars Salem needs to break even per year.

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Definitions:

Foreclosure Rate

The percentage of home mortgages on which the lender has started the process of taking ownership of the property because the borrower has failed to make the monthly payments.

Economic Expansions

Periods when an economy grows and not just recovers from a decline, typically seen by increases in industrial production, employment, and sales.

Mortgage Default Rates

The percentage of borrowers failing to make their mortgage payments on time, leading to default.

2008 Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, which was prominently initiated in 2008 due to the collapse of the housing market and financial sector.