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. Cost of direct materials needed to make milkshakes is as follows: Whole Milk Cream Sugar $15 for 740 oz. 2 oz. 3 02. $20 for 128 oz. 2 oz. 3 oz. 10 for 30 cups 1/2 cup 3/4cup Premium Vanilla Ice Cream Flavorings Flavored specialty straw Cups $24 for 600 oz. 6 oz. 9 oz. $0.25 per shake $0.40 per shake $0.75 per shake $0.75 per shake 500 8 oz. cups for $200 Cups 500 12 02. cups for $250