We Scream For Ice Cream sells ice cream in three flavors: Chocolate, Strawberry, and Vanilla. It sold

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We Scream For Ice Cream sells ice cream in three flavors: Chocolate, Strawberry, and Vanilla. It sold 28,000 gallons last year, but it is still losing money. For every five gallons of ice cream sold, one gallon is Strawberry and the remainder is split evenly be- tween Chocolate and Vanilla. Fixed costs for We Scream For Ice Cream are \($55,056\) and additional information follows:

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a. Assuming the sales mix remains constant, how many total gallons of ice cream must be sold to break even?

b. How many gallons of strawberry ice cream will be sold at the break-even point?

c. What will total revenue equal at the break-even point?

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Managerial Accounting For Undergraduates

ISBN: 9780357499948

2nd Edition

Authors: James Wallace, Scott Hobson, Theodore Christensen

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