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Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae $ 5.00 Variable costs 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 costs per sundae: | |
Ingredients | 1.35 |
Direct labor | 0.45 |
Overhead | 0.20 |
Fixed costs per month | $ 6,600 |
Required:
- Determine Izzys break-even point in units and sales dollars.
- Determine how many sundaes must be sold to generate a profit of $13,200.
- Calculate Izzys new break-even point in units for each of the following independent scenarios:
- Sales price decreases by $0.50.
- Fixed costs decrease by $300 per month.
- Variable costs increase by $0.50 per sundae.
- Based on the original information, how many sundaes must Izzy sell to generate a profit of $34,000, 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. Determine Izzy's break-even point in units and sales dollars. Based on the original information, how many sundaes must Izzy sell to generate a profit of $34,000, if sales price increases by $0.50 and variable costs increase by $0.30 ? Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number. Complete this question by entering your answers in the tabs below. Determine how many sundaes must be sold to generate a profit of $13,200
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