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:

Implied Warranty

A legal guarantee that a product will meet certain standards of quality and reliability even if not explicitly stated in a contract.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, designed to standardize and harmonize sales and commercial transactions across state lines.

Express Warranty

A written guarantee by the seller about the quality or performance of a product, provided at the time of sale.

Specific Performance

A legal remedy where a court orders a party to perform a specific act, often in lieu of damages.