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Assume Annie's Homemade Ice Cream divides its total annual sales of $$650,000$ into two sales channels: in$-$store sales and mobile What is the break$-$even point in dollar sales?

Break$-$even point in dollar sales Assuming an average selling price of $$4\mathrm{.}50$ per serving, what is the break$-$even point in number of servings $($round your

answer up to the nearest whole number$)?$

Break$-$even point in number of servings

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in dollar sales $($rounded to the nearest dollar$)?$

Break$-$even point in dollar salesIf the in$-$store segment's unit sales grow by $5\%$ and all else holds constant, then what would be the impact on profits

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Profits would increase by

sales. The in$-$store sales comprise $65\%$ of total sales and the mobile sales account for $35\%$ of total sales. The variable expense ratio is

$30\%$ for in$-$store sales and $40\%$ for mobile sales. Variable expenses are a higher percentage of sales in the mobile sales segment

because of various factors, such as price discounts offered to high$-$volume customers, packaging costs, and incremental fuel costs. Of

the company's total annual fixed expenses of $$240,000,$$$10,000$ is traceable to in$-$store sales, $$15,000$ is traceable to mobile sales,

and the remainder are common fixed expenses. The common fixed expenses$-$the three largest of which include employee salaries

$($$$120,000),$ equipment depreciation $($$$40,000),$ and store rent $($$$36,000)-$would be avoidable only if the company went out of

business.

Required:

Prepare a contribution format segmented income statement that divides Annie's Homemade's Ice Cream total sales into two sales

channels: in$-$store sales and mobile sales.

For the mobile sales segment:

a$.$ What is the break$-$even point in dollar sales?

b$.$ Assuming an average selling price of $$4\mathrm{.}50$ per serving, what is the break$-$even point in number of servings $($round your answer

up to the nearest whole number$)?$

For the in$-$store segment:

a$.$ What is the break$-$even point in dollar sales $($rounded to the nearest dollar$)?$

b$.$ If the in$-$store segment's unit sales grow by $5\%$ and all else holds constant, then what would be the impact on profits $($rounded to

the nearest dollar$)?$

Complete this question by entering your answers in the tabs below.

Prepare a contribution format segmented income statement that divides Annie's Homemade's total sales into two sales

channels: in$-$store sales and mobile sales.

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