Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

THE SCENARIO: 31 Scoops Ice Cream a new concept in gourmet ice cream is finishing up its business plan for upcoming Venture Capital rounds and

image text in transcribed
THE SCENARIO: 31 Scoops Ice Cream a new concept in gourmet ice cream is finishing up its business plan for upcoming Venture Capital rounds and just needs to complete its break even analysis to be done. In order to get started with its ice cream business, you will need to purchase some state-of-the-art ice-cream manufacturing equipment valued at $50,000, which they will be able to purchase at a 30% discount. In addition, they will need to rent several store locations for a total of $15,000 per month. Other fixed costs include monthly salaries of $6,000 for 3 scoopers (that's $2,000 per scooper per month) and other miscellaneous expenses of $2,000 per month. For you accounting "experts" out there, for the purposes of this exercises, you may ignore the impact/effect of depreciation. 31 Scoopsestimates Unit Variable Costs to be $1. They would also like to remain price competitive and charge $3.50 per serving of ice cream. Using the information presented here, solve the following 4 breakeven problems. There will be space in the assignment for you to enter the answers, which are numeric. There will also be a link for you to submit your supporting calculations in whatever form you wish to submit them In addition to submitting the answer, please make sure to submit and "show all your work!" The correct answer counts for part of the score, but the work accounts for the majority. So if you give me a correct answer but don't show any work, you only earn partial credit. On the other side, if you give me the wrong answer, but I can see evidence of concept mastery in your work, you will earn partial credit instead of 0%. All in all, it's a good thing to show your work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Restaurant From Concept To Operation

Authors: John R Walker

7th Edition

1118629620, 9781118629628

More Books

Students also viewed these General Management questions

Question

Can I go blind with Multiple Sclerosis?

Answered: 1 week ago

Question

3. Avoid making mistakes when reaching our goals

Answered: 1 week ago