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Jersey Cow Creamery sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty. It sold 14,000 gallons last year. For
Jersey Cow Creamery sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty. It sold 14,000 gallons last year. For every five gallons of ice cream sold, one pound is Fruity Tooty and the remainder is split evenly between Peanut Butter and Rocky Road. Fixed costs for the company are $15,750 and additional information follows: Peanut Rocky Road Butter Fruity Tooty Sales price per pound $5.25 $6.00 $6.50 Variable cost per pound $4.25 $4.75 $5.75 Breakeven sales in dollars for the company is O $45,000. O $87,000. O$71.250. O $75,000
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