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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 $9,000 1. Determine Izzys

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 $9,000

1. Determine Izzys break-even point in units and sales dollars.

2. Determine how many sundaes must be sold to generate a profit of $18,000.

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 $50,000, if sales price increases by $0.50 and variable costs increase by $0.30?

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