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Les 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
Les 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 $5,100 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 $10,200. 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 $24,000, if sales price increases by $0.50 and variable costs increase by $0.30? D. c. Variable costs increase by $0.50 per sundae. 4. Based on the original information, how many sundaes must Izzy se $0.50 and variable costs increase by $0.30? Complete this question by entering your answers in the tabs b 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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