Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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 sundaes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CIA Part 1 Essentials Of Internal Auditing 2022

Authors: MUHAMMAD ZAIN

1st Edition

B09PHFC28N, 979-8794951356

More Books

Students also viewed these Accounting questions