Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. maria lorenzi owns an ice cream stand that she ope

Maria Lorenzi owns an ice cream stand that she operates during the summer months in...

70.2K

Verified Solution

Question

Accounting

Maria Lorenzi owns an ice cream stand that she operates during the summer months in West Yellowstone, Montana. She is unsure how to price her ice cream cones and has experimented with two prices in successive weeks during the busy August season. The number of people who entered the store was roughly the same each week. During the first week, she priced the cones at $4.60 and 2,130 cones were sold. During the second week, she priced the cones at $5.10 and 1,700 cones were sold. The variable cost of a cone is $.90 and consists solely of the costs of the ice cream and the cone itself. The fixed expenses of the ice cream stand are $2,025 per week. Required: 1. What profit did Maria earn during the first week when her price was $4.60? 2. At the start of the second week, Maria increased her selling price by what percentage? What percentage did unit sales decrease? (Round your percentage answers to 2 decimal place.) 3. What profit did Maria earn during the second week when her price was $5.10? 4. What was Maria's increase (decrease) in profits from the first week to the second week?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

1. For each of the following circumstances, indicate wheter the calculated molarity of NaoH would be...

Biology
1.2K views

CODIV-19 has been sweeping across the globe, rendering all physical interaction hazardous, as such, most people...

Biology
1.2K views

Predict the impact of a severe drought for the Georgia marshland ecosystem Your response needs...

Basic Math
1.2K views

Two large numbers of the Fibonacci sequence are F 49 7 778 742 049 and...

Algebra
1.2K views

5 4r 5r 63 15 14 13 12 11 10 9 8 7 6 5...

Accounting
1.2K views

Which of the following accounts normally has a debit balance? Supplies. Service Revenue. Common Stock....

Accounting
1.2K views

Determine the amount to be paid in full settlement of each invoice, assuming that credit...

Accounting
1.2K views

value: 5.00 points Phelps, Inc. had assets of $98,084, liabilities of $21,028, and 14,426 shares...

Accounting
1.2K views

Purchases and sales of a certain product during Jan 2009 are given below. Purchases On...

Accounting
1.2K views

K9 Co. produces and sells dog treats for discriminating pet owners. The contribution margin ratio...

Accounting
1.2K views

Which of the following accounts is considered to be a contra-shareholders' equity account? Select one:...

Finance
1.2K views

Recently the Federal Reserve (the Fed) has been striving to keep interest rates low in...