Maria Lorenzi (A)

10.000 points Maria Lorenzi owns an ice cream stand that she operates during the summer months in West Yellowstone Montana. Her store caters primarily to tourists passing through town on their way to Yellowstone National Maria is unsure of how she should price her ice cream cones and has experimented with two prices in successive weeks during the busy August season. The number of people who entered the store was roughly the same each week. During the first week, she priced the cones at $1.50 and 890 cones were sold. During the second week, she priced the cones at $1.40 and 1,430 cones were sold. The variable cost of a cone is $.50 and consists solely of the costs of the ice cream and of the cone itself. The fixed expenses of the ice cream stand are $585 per week. Required: income for sale price of $1.50 and $1.40? ound your answers to 2 1-a. Calculate the net operating decimal places.) $1.50 Price $1.40 Price Unit sales Sales Cost of sales Contribution margin Fixed expenses Net operating income