(Var1) TP: 150

(Var) Sal:2000

Sve ohn le) Chapter 6 - CVP Analysis - Kona Ice Case Study - Your unique variables can be found in "My Grades" Failure to use your assigned variables will result in a grade of O-assigned for the case study 99875 12 Assume a level of activity of 2,000 units for the month. Sales 20 oz. snow cones sell for $4.00 each Variable Expenses Inventory Pack, provides all supplies for $5.500 $50,000 in sales Deliveries of Ice, enough to complete $150/ delivery 1,000 mediums Fixed Expenses Truck, 10 year useful life Insurance and other overhead costs Salaries, monthly To yearly $119,850 X $600 monthly [Vari) in My Grades $15,000/12 - 1250 Franchise Fee, annually 1. Calculate the Variable costs per snow cone. 50.000.-12500 221 4 ice 150/1000 .15 SS00 242.0 +227=242 2. Calculate the Fixed costs per month (you maybe have to convert some from annual to month - assume straight line over the year) 2978$15 Sales 3. Using the information from 1 & 2 above, complete a contribution format income statement for the month, assuming the given level of activity for the month. 2000 Less: Variable Expenses Contribution Margin Less: Fixed Expenses Net operating Income sells 4. Calculate what the operator of the Kona Ice snow cone truck has to sell each month to break even # of snow cones SSS Sales 4. 31600 7.8000=0.995 2980757.1.58=1898 3 208.75% o que as 10.12 7591.77 5. Assume that the operator of the Kona Ice snow cone truck wants to make an operating profit of $[Var2] in My Grades per month. How many show cones must be sold each month to achieve this profit? # of snow cones SSS Sales 302.001 Fall 2020