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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Answered: Izzy Ice Cream has the following price…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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?
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 62.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 80.00 24.00 24.00 48.00 $ 32.00 Required 1 Required 2 40% Required 3 18.00 25.40 43.40 $18.60 30% с $81.00 The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. 9.00 43.65 52.65 $28.35 Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? 35% Complete this question by…
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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