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Izzy Ice Cream has the following price and cost information: Price per 2-scoop...

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Question

Accounting

Izzy Ice Cream has the following price and cost information:

Price per 2-scoop sundae $ 5.00
Variable costs per sundae:
Ingredients 1.35
Direct labor 0.45
Overhead 0.20
Fixed costs per month $ 6,600

Required:

  1. Determine Izzys break-even point in units and sales dollars.
  2. Determine how many sundaes must be sold to generate a profit of $13,200.
  3. Calculate Izzys new break-even point in units for each of the following independent scenarios:
    1. Sales price decreases by $0.50.
    2. Fixed costs decrease by $300 per month.
    3. Variable costs increase by $0.50 per sundae.
  4. Based on the original information, how many sundaes must Izzy sell to generate a profit of $34,000, if sales price increases by $0.50 and variable costs increase by $0.30?imageimageimageimage

Complete this question by entering your answers in the tabs below. Determine Izzy's break-even point in units and sales dollars. Based on the original information, how many sundaes must Izzy sell to generate a profit of $34,000, if sales price increases by $0.50 and variable costs increase by $0.30 ? Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number. Complete this question by entering your answers in the tabs below. Determine how many sundaes must be sold to generate a profit of $13,200
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