I scream for ice cream sells specialty ice cream in three flavors: rocky road, peanut butter, and fruity tooty. it sold 17,0
00 gallons last year. for every five gallons of ice cream sold, one gallon is fruity tooty and the remainder is split evenly between peanut butter and rocky road. fixed costs for i scream for ice cream are $7,500 and additional information follows: rocky road peanut butter fruity tooty sales price per gallon $6.00 $5.00 $5.25 variable cost per gallon $5.25 $4.50 $4.00 the breakeven sales volume in gallons for i scream for ice cream is
--------------------------------------------------------------------- Define x: --------------------------------------------------------------------- Let x be the number of 5 gallons that need to be sold to breakeven:
--------------------------------------------------------------------- Find the number of gallons of ice-cream needed: --------------------------------------------------------------------- Total number of 5 gallons needed = 1764.7
Total gallons needed = 1764.7 x 5 =8823.5
--------------------------------------------------------------------- Answer: I sceam needs to sell 8823.5 gallons of ice cream to break even. ---------------------------------------------------------------------
