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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: Price per 2-scoop sundae Variable cost per sundae: Ingredients $ 5.00 1.35 0.45 0.20 Fixed cost per month $6,900 Direct labor Overhead 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 $13,800. 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 $36,000, 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 Break-even sales sundaes
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