Bess Donuts Sells Boxes of Donuts Each with a Variable

question 160

Essay

Bess Donuts sells boxes of donuts each with a variable cost percentage of 37.5%. Its fixed costs are $46,875 per year.
Instructions
Determine the sales dollars Bess needs to break even per year.

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Definitions:

Total Shipping Costs

The complete expenses involved in transporting goods from one location to another, including freight, packaging, handling, and insurance.

Northwest Corner Allocation

A method used in operations research for solving transportation problems by starting allocations in the northwest (top-left) corner of a cost matrix and moving through the matrix to minimize costs.

Northwest-Corner Rule

A procedure in the transportation model where one starts at the upper-left-hand cell of a table (the northwest corner) and systematically allocates units to shipping routes.