Question
I Scream For Ice Cream sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty. It sold 17,000 gallons last year.
I Scream For Ice Cream sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty. It sold 17,000 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 I Scream For Ice Cream are$30,000.00 and additional information follows:
Rocky Road | Peanut Butter | Fruity Tooty | |
Sales price per gallon | $ 8.75 | $ 8.25 | $5.00 |
Variable cost per gallon | $6.00 | $5.50 | $3.50 |
The breakeven sales volume in gallons for I Scream For Ice Cream is
A. 6,000.
B. 12,000.
C. 6,800.
D. 4,286.
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