Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I Scream For Ice Cream sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty. It sold 10,000 gallons last year.
I Scream For Ice Cream sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty. It sold 10,000 gallons last year. For every five gallons of ice cream sold, one pound is Fruity Tooty and the remainder is split evenly between Peanut Butter and Rocky Road. Fixed costs for I Scream For Ice Cream are $38,125 and additional information follows:
Rocky Road | Peanut Butter | Fruity Tooty | |
Sales price per pound | $8.75 | $7.75 | $6.50 |
Variable cost per pound | $5.50 | $3.75 | $5.75 |
The weighted average contribution margin per pound for the three products of I Scream For Ice Cream is
$3.05. | ||
$15.25. | ||
$76.25. | ||
$0.40. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started