ILLY ICE Vitam has the tiny price and cost information. Price per 2-scoop sundae Variable costs per sundae: Ingredients Direct labor Overhead Fixed costs per month Required: $5.00 1.35 0.45 0.20 $ 9,000 1. Determine Izzy's break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $18,000. 3. Calculate Izzy's new break-even point in units for each of the following independent scenarios: a. Sales price decreases by $0.50. b. Fixed costs decrease by $300 per month. c. 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 $50,000, if sales price increases by $0.50 and variable costs increase by $0.30? Complete this question by entering your answers in the tabs below. 3a. Sales price decreases by $0.50 3b. Fixed costs decrease by $300 per month 3c. Variable costs increase by $0.50 per sundae Required 1 Required 2 Required 3 Required 4 Calculate Izzy's new break-even point in units for each of the following independent scenarios: Note: Do not round your intermediate calculations. a. Sales price decreases by $0.50. b. Fixed costs decrease by $300 per month. c. Variable costs increase by $0.50 per sundae. < Required 2 Break-Even Point sundaes sundaes sundaes Required 4 > Show less A
ILLY ICE Vitam has the tiny price and cost information. Price per 2-scoop sundae Variable costs per sundae: Ingredients Direct labor Overhead Fixed costs per month Required: $5.00 1.35 0.45 0.20 $ 9,000 1. Determine Izzy's break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $18,000. 3. Calculate Izzy's new break-even point in units for each of the following independent scenarios: a. Sales price decreases by $0.50. b. Fixed costs decrease by $300 per month. c. 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 $50,000, if sales price increases by $0.50 and variable costs increase by $0.30? Complete this question by entering your answers in the tabs below. 3a. Sales price decreases by $0.50 3b. Fixed costs decrease by $300 per month 3c. Variable costs increase by $0.50 per sundae Required 1 Required 2 Required 3 Required 4 Calculate Izzy's new break-even point in units for each of the following independent scenarios: Note: Do not round your intermediate calculations. a. Sales price decreases by $0.50. b. Fixed costs decrease by $300 per month. c. Variable costs increase by $0.50 per sundae. < Required 2 Break-Even Point sundaes sundaes sundaes Required 4 > Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:ILLY Incam has the following price and cost internation.
Price per 2-scoop sundae
Variable costs per sundae:
$ 5.00
Ingredients
Direct labor
Overhead
Fixed costs per month
Required:
1. Determine Izzy's break-even point in units and sales dollars.
2. Determine how many sundaes must be sold to generate a profit of $18,000.
1.35
0.45
0.20
$ 9,000
3. Calculate Izzy's new break-even point in units for each of the following independent scenarios:
a. Sales price decreases by $0.50.
b. Fixed costs decrease by $300 per month.
c. 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 $50,000, if sales price increases by
$0.50 and variable costs increase by $0.30?
Complete this question by entering your answers in the tabs below.
3a. Sales price decreases by $0.50
3b. Fixed costs decrease by $300 per month
3c. Variable costs increase by $0.50 per sundae
Required 1 Required 2 Required 3 Required 4
Calculate Izzy's new break-even point in units for each of the following independent scenarios:
Note: Do not round your intermediate calculations.
a. Sales price decreases by $0.50.
b. Fixed costs decrease by $300 per month.
c. Variable costs increase by $0.50 per sundae.
< Required 2
Break-Even Point
sundaes
sundaes
sundaes
Required 4 >
Show less ▲
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Step 1: Introduce to break even point
VIEWStep 2: Working for break even point
VIEWStep 3: Working for target sales unit for profit of $18,000
VIEWStep 4: Working for break even point if sales price decreased by $0.50
VIEWStep 5: Working for break even point if fixed cost decreased by $300
VIEWStep 6: Working for break even point if variable cost increases by $0.50
VIEWStep 7: Working for target sales unit for profit of $50,000
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