Ice cream truck operation: Assume that you will operate an Italian Gelato Ice cream truck at the Guildford town center parking lot and that you would be selling only three types of flavours - Chocolate, Strawberry and Vanilla (decision based on previous survey). Selling price of the Chocolate flavour is $8.00, Strawberry flavour is $ 9.00 and Vanilla flavour is $ 7.00 (based on double scoop serving on a cone). You have identified that on average you sell 40% Chocolate, 35% Strawberry and 25% Vanilla flavour. You generally work 25 days a month from 10 am to 6 pm with no additional staff

A - Identify your fixed cost per month to run an ice cream truck. (Provide realistic cost break down for each of your fixed cost items per month)

B - Identify your unit cost per Ice cream (assume that all flavours cost the same) (Provide realistic cost break down to make a two-scoop ice cream on a cone)

C - What is your monthly BEP$ value?

D - What are the factors that can influence effective capacity?

E - What are your bottleneck operations? What would you do to overcome these

operations?