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	$	6,600

3. Calculate Izzys 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 $34,000, if sales price increases by $0.50 and variable costs increase by $0.30?

• Required 3
• Required 4

Calculate Izzys new break-even point for each of the following independent scenarios: (Do not round your intermediate calculations.)

		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

• Required 4

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? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)

Break-even units

sundaes