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