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 $6,300 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 $12,600. 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 $32,000, if sales price increases by $0.50 and variable costs increase by $0.30? 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 Required 1 Required 2 Required 3 Required 4 Determine how many sundaes must be sold to generate a profit of $12,600. 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 Break-Even Point 3a. sundaes 3b. Sales price decreases by $0.50 Fixed costs decrease by $300 per month Variable costs increase by $0.50 per sundae sundaes 3c. sundaes Required 1 Required 2 Required 3 Required 4 Based on the original information, how many sundaes must Izzy sell to generate a profit of $32,000, 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