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:

Goods and Services

The tangible products and intangible activities that satisfy human wants or needs and are available for purchase.

Efficiently

Achieving a goal or desired outcome with the minimum waste of time, effort, or resource, often associated with optimal productivity.

Marginal Rate

A measure of the change in one variable compared to a unit change in another variable.

Sailboats

Wind-powered boats used for recreation, sport, or transportation, showcasing a blend of traditional and modern navigational technology.