Answer Happy

E6-7 (Algo) Determining Break-Even Point and Analyzing Changes in Price and Cost Structure [LO 6-1, 6-2, 6-3, 6-4] Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae Variable cost per sundae: Ingredients Direct labor Overhead Fixed cost per month $ 5.00 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 $13,800. 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. 1.35 0.45 0.20 $6,900 4. Based on the original information, how many sundaes must Izzy sell to generate a profit of $36,000, if sales price increases by $0.50 and variable costs increase by $0.30? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Break-even units Break-even sales Required 3 Required 4 Determine Izzy's break-even point in units and sales dollars. sundaes Required 1 Required 2 >

Price per 2-scoop sundae Variable cost per sundae: Ingredients Direct labor Overhead Fixed cost per month $ 5.00 1.35 0.45 0.20 $6,900 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 $13,800. 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 $36,000, 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. sundaes Required 1 Required 2 Required 3 Determine how many sundaes must be sold to generate a profit of $13,800. Target sales Required 4 < Required 1 Required 3

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate Izzy's new break-even point for each of the following independent scenarios: (Do n calculations.) a. Sales price decreases by $0.5. b. Fixed costs decrease by $300 per month. c. Variable costs increase by $0.5 per sundae. 3a. Sales price decreases by $0.5 3b. Fixed costs decrease by $300 per month 3c. Variable costs increase by $0.5 per sundae < Required 2 Break-Even Point sundaes sundaes sundaes Required 4 >

4. Based on the original information, how many sundaes must Izzy sell to generate a profit of $36,000, 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. Required 1 Required 2 Required 3 Required 4 Based on the original information, how many sundaes must Izzy sell to generate a profit of $ by $0.50 and variable costs increase by $0.30? (Round your intermediate calculations to 2 de the nearest whole number.) Units to earn target profit sundaes < Required 3 Required 4 >