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?