Calculate the breakeven point in units and in dollars

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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

Reference no: EM133002352

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