Izzy Ice Cream has the following price and cost information: $ 5.ee Price per 2-scoop...
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Izzy Ice Cream has the following price and cost information: $ 5.ee Price per 2-scoop sundae Variable cost per sundae: Ingredients Direct labor Overhead Fixed cost per month 1.35 0.45 0.20 $ 3,300 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 $6,600. 3. Calculate Izzy's new break-even point 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 $12,000, if sales price increases by $0.50 and variable costs increase by $0.30
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