The Vanilla Fudge Company runs a chain of ice cream stands in the Pacific Northwest, Following...
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The Vanilla Fudge Company runs a chain of ice cream stands in the Pacific Northwest, Following is data for location #37 for June. This location sells only one product: a large size double-scoop ice cream cone, in one flavour: vanilla fudge. Cost per gallon of premium ice cream $5.00 Scoops per gallon 20 Cost for the waffle cone .25 Paper products (a variable cost) $500 for the month Fixed costs for the month (salaries, rent, insurance, etc.) $1.00 per cone Cones sold in June: 5,000 Sales price per cone: $2.35 The company expects the same cost relationships to hold for July. a. Prepare two pro forma budgets for July, deriving projected operating income one based on sales of 7,500 cones, and one based on sales of 10,000 cones. The Vanilla Fudge Company runs a chain of ice cream stands in the Pacific Northwest, Following is data for location #37 for June. This location sells only one product: a large size double-scoop ice cream cone, in one flavour: vanilla fudge. Cost per gallon of premium ice cream $5.00 Scoops per gallon 20 Cost for the waffle cone .25 Paper products (a variable cost) $500 for the month Fixed costs for the month (salaries, rent, insurance, etc.) $1.00 per cone Cones sold in June: 5,000 Sales price per cone: $2.35 The company expects the same cost relationships to hold for July. a. Prepare two pro forma budgets for July, deriving projected operating income one based on sales of 7,500 cones, and one based on sales of 10,000 cones.
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To create pro forma budgets for July based on different sales volumes 7500 cones and 10000 cones well calculate the costs and revenues for each scenar... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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