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The Burundi Street Ice Cream Shop sells ice cream cones. The store's cost structure is as follows: fixed costs per month are Birr 2,000. Variable costs are Birrl.50 for single scoop cone and Birr1.75 for a double scoop cone. 2.12 Required: a. If Burundi Street only sells double scoop cones, and sells them for Birr 4.25 per cone, what is the break-even point in units? b. If Burundi Street only sells single scoop cones, and charges Birr 3.50 per cone, how many ice cream cones would Burundi Street have to sell to make a profit of Birr 3, 000 per month? c. Assume that Burundi Street wants to sell only double scoop cones, and believes it can sell 8,000 cones per month at Birr 4.25 per cone. What would the variable cost per cone have to be for Burundi Street to make a profit of Birr 8,000 per month?

The Burundi Street Ice Cream Shop sells ice cream cones. The store's cost structure is as follows: fixed costs per month are Birr 2,000. Variable costs are Birrl.50 for single scoop cone and Birr1.75 for a double scoop cone. 2.12 Required: a. If Burundi Street only sells double scoop cones, and sells them for Birr 4.25 per cone, what is the break-even point in units? b. If Burundi Street only sells single scoop cones, and charges Birr 3.50 per cone, how many ice cream cones would Burundi Street have to sell to make a profit of Birr 3, 000 per month? c. Assume that Burundi Street wants to sell only double scoop cones, and believes it can sell 8,000 cones per month at Birr 4.25 per cone. What would the variable cost per cone have to be for Burundi Street to make a profit of Birr 8,000 per month?

FINANCIAL ACCOUNTING
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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please can you work questions of A up-to D and we can count as 4 questions

2.12 The Burundi Street Ice Cream Shop sells ice cream cones. The store's cost structure is as follows: fixed costs per month are Birr 2,000. Variable costs are Birrl.50 for single scoop cone and Birrl.75 for a double scoop cone. Required: a. If Burundi Street only sells double scoop cones, and sells them for Birr 4.25 per cone, what is the break-even point in units? b. If Burundi Street only sells single scoop cones, and charges Birr 3.50 per cone, how many ice cream cones would Burundi Street have to sell to make a profit of Birr 3, 000 per month? c. Assume that Burundi Street wants to sell only double scoop cones, and believes it can sell 8,000 cones per month at Birr 4.25 per cone. What would the variable cost per cone have to be for Burundi Street to make a profit of Birr 8,000 per month? d. Ignore Part (C) and refer to the original information. If Burundi Street only sells single scoop cones, and sells 5,000 cones per month for Birr 3.60 per cone, what is the contribution margin per unit?
Transcribed Image Text:2.12 The Burundi Street Ice Cream Shop sells ice cream cones. The store's cost structure is as follows: fixed costs per month are Birr 2,000. Variable costs are Birrl.50 for single scoop cone and Birrl.75 for a double scoop cone. Required: a. If Burundi Street only sells double scoop cones, and sells them for Birr 4.25 per cone, what is the break-even point in units? b. If Burundi Street only sells single scoop cones, and charges Birr 3.50 per cone, how many ice cream cones would Burundi Street have to sell to make a profit of Birr 3, 000 per month? c. Assume that Burundi Street wants to sell only double scoop cones, and believes it can sell 8,000 cones per month at Birr 4.25 per cone. What would the variable cost per cone have to be for Burundi Street to make a profit of Birr 8,000 per month? d. Ignore Part (C) and refer to the original information. If Burundi Street only sells single scoop cones, and sells 5,000 cones per month for Birr 3.60 per cone, what is the contribution margin per unit?
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