Homework question 1

Jersey Cow Creamery sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty. It sold 12,000 gallons last year. For every five gallons of ice cream sold, one gallon is Fruity Tooty and the remainder is split evenly between Peanut Butter and Rocky Road. Fixed costs for the company are $36,250 and additional information follows: Rocky Road Peanut Butter Fruity Tooty Sales price per gallon $3.75 $7.25 $8.25 Variable cost per gallon $2.25 $5.00 $3.25 The breakeven sales volume in gallons for the company is O A. 14,500. O B. 4,143. O C. 7,250. O D. 4,800.Sweet Sounds Headphones sells deluxe headphones for $80 each. Unit variable expenses total $70. The breakeven sales in units is 2,800 and budgeted sales in units is 4,333. What is the margin of safety in dollars? O A. $15,330 O B. $122,640 O C. $570,640 O D. $1,533