Ice Cream Company makes three products (Chocolate Ice Cream, Vanilla Ice Cream, and Strawberry Ice...

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Accounting

Ice Cream Company makes three products (Chocolate Ice Cream, Vanilla Ice Cream, and Strawberry Ice Cream), all of which use a very rare ingredient called Nitra Cream. Ice Cream Company can purchase only 500 ounces of Nitra Cream per month from a South American source. Below are data for the three products: 900 ounces of Nitra Cream per month from a South American source. Below are data for the three products: Ice Cream Company makes three products (Chocolate Ice Cream, Vanilla Ice Cream, and Strawberry Ice Cream), all of which use a very rare ingredient called Nitra Cream. Ice Cream Company can purchase only
500 ounces of Nitra Cream per month from a South American source. Below are data for the three products: 900 ounces of Nitra Cream per month from a South American source. Below are data for the three
products:
How should Ice Cream Company allocate the 900 ounces of Nitra Cream, assuming it can sell unlimited quantities of all three produces?
Select one:
a. All 900 ounces should be allocated to Vanilla Ice Cream
b. All 900 ounces should be allocated to Chocolate Ice Cream
c. None of the above
d. All 900 ounces should be allocated to Strawberry Ice Cream
Chocolate Vanilla Strawberry
Unit Selling Price $40 $32 $50
Unit Variable Cost 102030
Unit Contribution Margin $30 $12 $20
Nitra Cream (ounces per unit)101520
How should Ice Cream Company allocate the 900 ounces of Nitra Cream, assuming it can sell unlimited quantities of all three produces?
Select one:
a.
All 900 ounces should be allocated to Vanilla Ice Cream
b.
All 900 ounces should be allocated to Chocolate Ice Cream
c.
None of the above
d.
All 900 ounces should be allocated to Strawberry Ice Cream
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