Item$6$Item$7$

$6\mathrm{.}48$points

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Item$7$

Last month Annie's Homemade sold $5,000$ servings of ice cream for $$5\mathrm{.}00$ each. Its variable cost is $$1\mathrm{.}25$ per serving and its total fixed costs were $$11,000.$

Required:

Calculate the change in next month$$s profit if:

Unit sales increase from $5,000$ to $5,200$ and all else holds constant.

The selling price per unit increases from $$5\mathrm{.}00$ to $$5\mathrm{.}50,$ unit sales decrease by $6\%,$ and all else holds constant.

The variable cost per serving decreases from $$1\mathrm{.}25$ to $$1\mathrm{.}15$ and all else holds constant.

The fixed costs increase by $$2,000,$ unit sales increase by $8\%,$ and all else holds constant.

$6\mathrm{.}42$points

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Item$6$

Annie's Homemade sells ice cream for $$5\mathrm{.}00$ per serving. Its variable cost per serving is $$1\mathrm{.}25$ and its total fixed costs per month are $$11,000.$

Required:

How many servings does Annie's need to sell each month to attain a target profit of $$6,625?$

What is Annie's dollar sales needed to attain a target profit of $$6,625$ per month?