Price per 2-scoop sundae $ 5.00 Variable cost per sundae: Ingredients 1.35 Direct labor 0.45 Overhead 0.20 Fixed cost per month $ 8,400 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 $46,000, if sales price increases by $0.50 and variable costs increase by $0.30?
Price per 2-scoop sundae $ 5.00 Variable cost per sundae: Ingredients 1.35 Direct labor 0.45 Overhead 0.20 Fixed cost per month $ 8,400 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 $46,000, if sales price increases by $0.50 and variable costs increase by $0.30?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Price per 2-scoop sundae | $ | 5.00 |
| Variable cost per sundae: | ||
| Ingredients | 1.35 | |
| Direct labor | 0.45 | |
| 0.20 | ||
| Fixed cost per month | $ | 8,400 |
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 $46,000, if sales price increases by $0.50 and variable costs increase by $0.30?
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