Make a list of the fixed and of variable costs you think would be incurred in running a bakery in a suburban shopping centre. What is "gross margin"? Four bakers run the shop for six days each week on an 8-hour shift for each person per day. Their total fixed costs are $5,400 pw and their current variable costs total $4,000 pw. At present, they produce 3,800 loaves pw but sell only 3,500 pw, with the unsold loaves given to a charity at the end of each day, before they go stale. What selling price do they need to set per loaf sold to break even? What price would they need to charge if they set their gross margins at 33%. What is their labour productivity in loaves produced/hour worked and, at the 33% gross margin, in $ profit/hour worked?