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Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae $ 5.00 Variable cost per sundae: Ingredients 1.35 Direct labor 0.45
Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae $ 5.00 Variable cost per sundae: Ingredients 1.35 Direct labor 0.45 Overhead 0.20 Fixed cost per month $ 5,400 | Required: 1. Determine Izzy's breakeven point in units and sales dollars. 2 Determine how many sundaes must be sold to generate a profit of $10,800. 3. Calculate Izzy's new breakeven 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 $26,000, if sales price increases by $0.50 and variable costs increase by $0.30
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