# Mike's Ice Cream Company produces and sells ice cream in three sizes: quart, half-gallon, and gallon. Relevant information for each of the sizes is as follows: Mike anticipates sales of $500,000 and fixed costs of $120,000 in 2012.Required:1. Determine the break-even sales volume in units and dollars for 2012.2. Determine Mike's 2012 projected profit.3. Assume that Mike's sales mix changes

Chapter 21, Practice Exercises #71

Mike's Ice Cream Company produces and sells ice cream in three sizes: quart, half-gallon, and gallon. Relevant information for each of the sizes is as follows:

Mike anticipates sales of $500,000 and fixed costs of $120,000 in 2012.

Required:

1. Determine the break-even sales volume in units and dollars for 2012.

2. Determine Mike's 2012 projected profit.

3. Assume that Mike's sales mix changes to 10% quarts, 40% half-gallons, and 50% gallons. Determine Mike's break-even sales volume in units anddollars.

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