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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

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20E
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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 ▲
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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