Izzy Ice Cream has the following price and cost information:Price per 2-scoop sundaeVariable costs per sundae:IngredientsDirect laborOverheadFixed costs per monthRequired: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.$5.003. 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 $0.30?Required 1 Required 21.350.450.20$ 9,000Complete this question by entering your answers in the tabs below.Break-even unitsBreak-even salesRequired 3 Required 4Determine Izzy's break-even point in units and sales dollars.sundaes< Required 1Required 2 >

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Calico Joe Fabrics sells a single product. The company estimates total fixed costs at $360,000 with demand, price, and total variable costs as follows: Units Demanded 73,000 83,000 93,000 103,000 113,000 Unit Price $31 O $28 O $27 O $30 $29 $31 30 29 28 27 Total Variable Costs $1,606,000 1,826,000 2,046,000 2,266,000 2,486,000 What price should Calico Joe Fabrics charge to maximize profits?
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Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae Variable costs per sundae: Ingredients Direct labor Overhead Fixed costs per month $ 5.00 1.35 0.45 0.20 $ 9,000