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Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae Variable cost per sundae: Ingredients $ 5.00 1.35 0.45 0.20 Fixed
Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae Variable cost per sundae: Ingredients $ 5.00 1.35 0.45 0.20 Fixed cost per month $ 7,800 Direct labor Overhead Required: 1. Determine Izzy's break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $15,600. 3. Calculate Izzy's new break-even point for each of the following independent scenarios: a. Sales price decreases by $0.50. b. Fixed costs decrease by $300 per month. c. 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 $42,000, if sales price increases by $0.50 and variable costs increase by $0.30? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine Izzy's break-even point in units and sales dollars. Break-even units Break-even sales sundaes 5 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine how many sundaes must be sold to generate a profit of $15,600. Target sales sundaes < Required 1 Required 3 > Required 1 Required 2 Required 3 Required 4 Calculate Izzy's new break-even point for each of the following independent scenarios: (Do not round your Intermediate calculations.) a. Sales price decreases by $0.5. b. Fixed costs decrease by $300 per month. c. Variable costs Increase by $0.5 per sundae.. Break-Even Point 3a. Sales price decreases by $0.5 sundaes 3b. Fixed costs decrease by $300 per month sundaes 3c. Variable costs increase by $0.5 per sundae sundaes Show less A Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Based on the original Information, how many sundaes must Izzy sell to generate a profit of $42,000, if sales price Increases by $0.50 and variable costs increase by $0.30? (Round your Intermediate calculations to 2 decimal places and final answer to the nearest whole number.) Units to earn target profit sundaes < Required 3 Required 4
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