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Pricing (from Chapter 8, Managerial Accounting) Assume that you plan to open a soft ice cream franchise in a resort community during the summer months.
Pricing (from Chapter 8, Managerial Accounting) Assume that you plan to open a soft ice cream franchise in a resort community during the summer months. Fixed costs for the three month period are projected to be $24,000. Variable costs per serving (ice cream and cone) would be $0.75, and there is a $0.25 A market analysis prepared by Oakland Ice indicates that summer sales at the resort community should total 20,000 cones. What price should be charged for each ice cream to achieve a profit of $40,000? What risks could happen that might prevent the company from making the target operating profit of $40,000? Please answer in 2-3 sentences
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