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	$	8,100

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 $16,200.

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 $44,000, if sales price increases by $0.50 and variable costs increase by $0.30?