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Question - Zeroll's icecream company produces and sells premium icecream cones in coles supermarket. The following tables shows selling price and cost information of icecream cones .
price per cone: $5
variable cost per cone:
ingrediants: $1.35
direct labour $0.45
overhead $0.20
fixed cost per month $3000
a) Calculate the breakeven point in units and in dollars?
b) The company general director determined a target profit of $6000for next year. Given the price and cost information above , what are the required sales in units and in dollars for the company to acheive this target?
c) Calculate Zerolls new break even point (in units and in dollars ) for each of the following independent scenarios:
i) selling price decreases by $0.50 per cone
ii) fixed costs decrease by $300per month
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