Izzy Ice Cream has the following price and cost information:

Price per 2-scoop sundae$ 5.00Variable costs per sundae: Ingredients1.35Direct labor0.45Overhead0.20Fixed costs per month$ 5,400

Required:

1. Determine Izzys break-even point in units and sales dollars.
2. Determine how many sundaes must be sold to generate a profit of $10,800.
3. Calculate Izzys new break-even point in units for each of the following independent scenarios:
   1. Sales price decreases by $0.50.
   2. Fixed costs decrease by $300 per month.
   3. Variable costs increase by $0.50 per sundae.
4. Based on the original information, how many sundaes must Izzy sell to generate a profit of $26,000, if sales price increases by $0.50 and variable costs increase by $0.30?