Purple Cow operates a chain of drive-ins selling primarily ice cream products. The following information is taken from the records of a typical drive-in now operated by the company. Average selling price of ice cream per gallon $15.70 Number of gallons sold per month 3,100 Variable costs per gallon: Ice cream $4.85 Supplies (cups, cones, toppings,

Average selling price of ice cream per gallon		$15.70
Number of gallons sold per month		3,100
Variable costs per gallon:
Ice cream	$4.85
Supplies (cups, cones, toppings, etc)	2.15
Total variable expenses per gallon		$7.00
Fixed costs per month:
Rent on building		$2,300.00
Utilities and upkeep		740.00
Wages, including payroll taxes		4,870.00
Managers salary, including payroll taxes but excluding any bonus		2,600.00
Other fixed expenses		1,400.00
Total fixed costs per month		$11,910.00

Based on these data, the monthly break-even sales volume is determined as follows:

$11,910 (fixed costs)	=	1,369 gallons or ($21,493)
$8.70 (contribution margin per unit)