Warios Ice Cream has the following price and cost information: Price per 2-scoop...
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Accounting
Warios Ice Cream has the following price and cost information:
Price per 2-scoop sundae
$ 5.00
Variable costs per sundae:
Ingredients
1.35
Direct labor
0.45
Overhead
0.20
Fixed costs per month
$ 6,600
Required:
Determine Warios break-even point in units and sales dollars.
Determine how many sundaes must be sold to generate a profit of $13,200.
Calculate Warios new break-even point in units for each of the following independent scenarios:
Sales price decreases by $0.50.
Fixed costs decrease by $300 per month.
Variable costs increase by $0.50 per sundae.
Based on the original information, how many sundaes must Wario sell to generate a profit of $34,000, if sales price increases by $0.50 and variable costs increase by $0.30?
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