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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 $ 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?image text in transcribed

Izzy Ice Cream has the following price and cost information: $ 5.00 Price per 2-scoop sundae Variable cost per sundae: Ingredients Direct labor Overhead Fixed cost per month 1.35 0.45 0.20 $8,100 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 $16,200. 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 $44,000, 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 sundaes Break-even sales

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