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CVP Analysis Example 8 Calgary Cones (CC) is a local ice-cream store owned by Andy Bernard. CC makes their ice cream fresh daily and prides itself on the quality of ingredients they use in their recipes. The three flavors CC makes are Chocolate, Vanilla, and Strawberry. All of the ice-cream flavors are made by Andy Bernard, who wakes up at 5 am every day and spends four hours mixing and making individual tubs of ice cream. As his recipes are a Bernard family secret, he is the only person who makes the ice cream, however, this does limit him as he can only make ice cream for exactly four hours per day. As the popularity of the ice cream has increased drastically, Andy wants to ensure that he is being as efficient as possible with his limited time. He has asked you to review his numbers and prepare a monthly breakdown of how many tubs of each ice-cream flavor he should make if he were to maximize the operating income for Calgary Cones. Andy would like you to prepare the quantitative analysis based on a 30-day month. Vanilla Stra r Selling Price $8.00 $6.15 $9.00 Direct materials $0.65 $0.60 $0.90 Directlabour $1.05 $1.15 $1.20 Variable manufacturing overhead $0.20 $0.25 $0.22 Variable selling cost pertub ofice-cream $1.00 $1.00 $1.00 Minutes per tub of ice-cream 2.7 18 3.2 Vanilla Stra i Minutes per tub of ice-cream 2.7 18 3.2 Monthly Demand per tub of ice-cream 800 1,200 1,100 Total minutes required 2,160 2,160 3,520 What is the optimal production schedule for Calgary Cones