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question 4 5 6 7 8 All listed costs relate to the large size Snowie. Specify your assumptions about the following items: a. Number of
question 4 5 6 7 8
All listed costs relate to the large size Snowie. Specify your assumptions about the following items: a. Number of days you anticipate opening the Snowie kiosk per month _________ b. Number of hours you will work (no wages required) per day ___________ c. Number of hours you will pay an employee to work in the Snowie kiosk per day __________ Is the cost of syrup a variable or fixed cost with respect to the number of Snowies so1d? What is the cost of syrup per Snowie? Discuss your answer. Is the cost of the worker attending the kiosk a variable or fixed cost with respect to the number of Snowies sold? Discuss your answer. What is the cost of the worker wage per day and per month? What is the total variable cost per Snowie(per cup)? What is the total fixed cost per month to operate the Snowie business? Using the data given and your assumptions in requirement (1), calculate the number of Snowies that you have to sell each month to break even. Assume that you want to make an operating profit of $2,000 per month (before taxes). How many snow cones must be sold to achieve this operating profit? Think about the break even and target profit quantities you just calculated. Do you think these quantities are realistic? Discuss and support yourStep by Step Solution
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