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E6-7 (Algo) Determining Break-Even Point and Analyzing Changes in Price and Cost Structure (LO 6-1, 6- 2, 6-3, 6-4) Izzy Ice Cream has the following
E6-7 (Algo) Determining Break-Even Point and Analyzing Changes in Price and Cost Structure (LO 6-1, 6- 2, 6-3, 6-4) 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 $ 8,100 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 $16,200. 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 $44,000, if sales price increases by $0.50 and variable costs increase by $0.30
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