An ice cream store sells a pint of ice cream for $4.00 each. The shop incurs a monthly fixed cost of $2,000 which includes salaries and rental. The variable cost per pint of ice cream is $1.50. The company is currently selling 600 pints per month.

A. How many pints per month does the store need to sell to break-even?

B. Using Goal Seek what is the new selling price per pint to achieve a profit of $10,000, if the company continues to sell 600 units

C. Using Goal Seek what is the new quantity that the store must sell to achieve a profit of $10,000, if the price remains at $4

Known parameters:
Selling price per unit
Fixed cost
Variable cost per unit
Input Data
Number of units
Results
Total revenue
Fixed cost
Total variable cost
Total cost
Profit
BEP
BEP$
B.
Known parameters:
Selling price per unit
Fixed cost
Variable cost per unit
Input Data
Number of units
Results
Total revenue
Fixed cost
Total variable cost
Total cost
Profit
BEP
BEP$
C
Known parameters:
Selling price per unit
Fixed cost
Variable cost per unit
Input Data
Number of units
Results
Total revenue
Fixed cost
Total variable cost
Total cost
Profit
BEP
BEP$

Answer rating: 100% (QA)

a The store needs to sell 800 pints per month to breakeven b The new selling price will ... View the full answer