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6-11 Izzy Ice Cream has the following price and cost information: $ 5.00 Price per 2-scoop sundae Variable cost per sundae: Ingredients Direct labor Overhead
6-11
Izzy Ice Cream has the following price and cost information: $ 5.00 Price per 2-scoop sundae Variable cost per sundae: Ingredients Direct labor Overhead Fixed cost per month 1.35 0.45 0.20 $8,700 Required: 1. Determine Izzy's break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $17,400. 3. Calculate Izzy's new break-even point for each of the following independent scenarios: a. Sales price decreases by $0.50. b. Fixed costs decrease by $300 per month. c. Variable costs increase by $0.50 per sundae. 4. Based on the original information, how many sundaes must Izzy sell to generate a profit of $48,000, if sales price increases by $0.50 and variable costs increase by $0.30? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine Izzy's break-even point in units and sales dollars. Break-even units sundaes Break-even sales Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine how many sundaes must be sold to generate a profit of $17,400. Target sales sundaes Required 1 Required 2 Required 3 Required 4 Calculate Izzy's new break-even point for each of the following independent scenarios: (Do not round your intermediate calculations.) a. Sales price decreases by $0.50. b. Fixed costs decrease by $300 per month. c. Variable costs increase by $0.50 per sundae. Show less A Break-Even Point sundaes 3a. Sales price decreases by $0.50 3b. Fixed costs decrease by $300 per month 3c. Variable costs increase by $0.50 per sundae sundaes sundaes Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Based on the original information, how many sundaes must Izzy sell to generate a profit of $48,000, if sales price increases by $0.50 and variable costs increase by $0.30? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) Break-even units sundaesStep by Step Solution
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