You are considering leaving your existing job to open a milkshake shack on the beach of a resort on the big island of Hawaii. In your research of restaurants and review of industry reports, you have an idea of what the expected minimum costs to be incurred in operating the business. A unique feature of your milkshakes is that they will be served with flavored straws that match the flavor of the chosen milkshakes by customers. Your research has you to conclude the following:

1. Sales prices of milkshakes $7 for small and $10 for large.
2. Costofdirect materials needed to make milkshakesisasfollows:

Ingredients Required Direct Material Ingredients Direct Material Prices Small (8 oz.) Large (12 oz.) Whole Milk $15 for 740 oz. 2 oz. 3 oz. Cream $20 for 128 oz. 2 oz. 3 oz. Sugar $10for 30 cups 1/2 cup 3/4 cup Premium Vanilla Ice Cream $24 for 600 oz. 6 oz. 9 oz. Flavorings $0.25 per shake | $0.40 per shake Flavored specialty straw $0.75 per shake | $0.75 per shake Cups 500 8 oz. cups for $200 X Cups 500 12 oz. cups for $250 X