* Cut 1 3 Font Name Font Size M labStop wrap Text Bio & V S Overline Copy Merge Cell K HERE TO SAVE YOUR WORK B21 A E B For the following four questions, please show your work to receive maximum credit. You own and operate Bear Country Shaved Ice. You can sell a single cup of shaved ice for $2.00 per cup For each cup that you sell you incur $0.10 for ice, $0.10 for papergoods and $0.30 for flavoring. You also incure the following monthly expenses: Rent $400, Wages $1,000 and Depreciation $25. a (s points) Calculate the contribution margin per cup of shaved ice: sales revenue= 2.00 per cup variable cost 10+ 10 + 30 Contribution margin = 27.5 - $4 6. (7 points) Calculate how many cups of shaved ice you need to sell each month to break even (round your answerto the next higher number of whole cups). (2 points) fixed costs 400 + 1,000 + 25 = 1,425 target profit=0 contribution margina 4 Break Even-1425+0/4357 cups inte finns alla con Sheet1 Now Haier contribution margin= 4 Break Even= 1425+0/4 = 357 cups c. (8 points) Calculate how many cups of shaved ice you need to sell each month to earn $900 in operating income (round your answerto the next higher number of whole cups). d. (15 points). The relevant range for Bear Country ranges from 500 cups per month to 2,500 cups per month. In the space below, produce their contribution margin income statement--they actually sold 2,000 cups of shaved ice this month. Sheet1 New Haier