Please help with question #2 (Prepare a budgeted contribution margin income statement)

Ice Treat, Inc. Background Ice Treat, Inc. is owned by Carlton and Katerina Minor. The company provides supplies and equipment for operating a crushed ice business. The product consists of syrup-flavored crushed ice served in a cup. Ice Treat sells equipment and supplies, including ice crushers, flavor machines, operating carts, syrups, cups and other supplies to businesses. Part 1: Cost-Volume-Profit Analysis for an Ice Treat Cart Assume that you are evaluating whether to start an Ice Treat business. You could operate a crushed ice cart at fairs, festivals and other outside venues. The cart is portable with wheels and a hitch for transiport and has sufficient work and storage space as well as electric and water outlets to support an efficient operation. The flavored crushed ice is called an "Ice Treat" and is sold in a 20 oz. size for $4.00 each. See Table for a list of all costs related to the 20-oz. Ice Treat. To compute depreciation for this case, use the straight-line method, assuming a useful life of five years and no salvage value. The equipment to be depreciated includes the ice crushers and the flavor machine. Part 3: Budgeting for an Ice Treat Business For Part 3, you now assume the Ice Treat supplier increased the cost of a gallon syrup from $4.25 (original cost) to $8.00. You, in turn, increase the selling price of an Ice Treat to $5.00 Requirements 1. Indicate your assumptions below - use the same assumptions you used in Part 1 for items a., b., c.: a. Number of days you anticipate opening the Ice Treat cart per month 20 b. Number of hours you will work (no wages required) per day Z c. Number of hours you will pay an employee to work in the Ice Treat cart per day 5 d. How many Ice Treats you estimate you will sell on an average day We plan on selling approximately 618 Ice Treats a day. We anticipate selling less during the week and more on weekends. 2. Prepare a budgeted contribution margin income statement for one month using the data given in Part 1 (except the new selling price and cost of syrup) and the assumptions that you listed in Part 3. Provide a separate line on the income statement for each variable cost and for each fixed cost. Ice Treat, Inc. Background Ice Treat, Inc. is owned by Carlton and Katerina Minor. The company provides supplies and equipment for operating a crushed ice business. The product consists of syrup-flavored crushed ice served in a cup. Ice Treat sells equipment and supplies, including ice crushers, flavor machines, operating carts, syrups, cups and other supplies to businesses. Part 1: Cost-Volume-Profit Analysis for an Ice Treat Cart Assume that you are evaluating whether to start an Ice Treat business. You could operate a crushed ice cart at fairs, festivals and other outside venues. The cart is portable with wheels and a hitch for transiport and has sufficient work and storage space as well as electric and water outlets to support an efficient operation. The flavored crushed ice is called an "Ice Treat" and is sold in a 20 oz. size for $4.00 each. See Table for a list of all costs related to the 20-oz. Ice Treat. To compute depreciation for this case, use the straight-line method, assuming a useful life of five years and no salvage value. The equipment to be depreciated includes the ice crushers and the flavor machine. Part 3: Budgeting for an Ice Treat Business For Part 3, you now assume the Ice Treat supplier increased the cost of a gallon syrup from $4.25 (original cost) to $8.00. You, in turn, increase the selling price of an Ice Treat to $5.00 Requirements 1. Indicate your assumptions below - use the same assumptions you used in Part 1 for items a., b., c.: a. Number of days you anticipate opening the Ice Treat cart per month 20 b. Number of hours you will work (no wages required) per day Z c. Number of hours you will pay an employee to work in the Ice Treat cart per day 5 d. How many Ice Treats you estimate you will sell on an average day We plan on selling approximately 618 Ice Treats a day. We anticipate selling less during the week and more on weekends. 2. Prepare a budgeted contribution margin income statement for one month using the data given in Part 1 (except the new selling price and cost of syrup) and the assumptions that you listed in Part 3. Provide a separate line on the income statement for each variable cost and for each fixed cost