The Burundi Street Ice Cream Shop sells ice cream cones. The store's cost structure is as follows: fixed costs per month are Birr 2,000. Variable costs are Birrl.50 for single scoop cone and Birr1.75 for a double scoop cone. 2.12 Required: a. If Burundi Street only sells double scoop cones, and sells them for Birr 4.25 per cone, what is the break-even point in units? b. If Burundi Street only sells single scoop cones, and charges Birr 3.50 per cone, how many ice cream cones would Burundi Street have to sell to make a profit of Birr 3, 000 per month? c. Assume that Burundi Street wants to sell only double scoop cones, and believes it can sell 8,000 cones per month at Birr 4.25 per cone. What would the variable cost per cone have to be for Burundi Street to make a profit of Birr 8,000 per month?

The Burundi Street Ice Cream Shop sells ice cream cones. The store's cost structure is as follows: fixed costs per month are Birr 2,000. Variable costs are Birrl.50 for single scoop cone and Birr1.75 for a double scoop cone. 2.12 Required: a. If Burundi Street only sells double scoop cones, and sells them for Birr 4.25 per cone, what is the break-even point in units? b. If Burundi Street only sells single scoop cones, and charges Birr 3.50 per cone, how many ice cream cones would Burundi Street have to sell to make a profit of Birr 3, 000 per month? c. Assume that Burundi Street wants to sell only double scoop cones, and believes it can sell 8,000 cones per month at Birr 4.25 per cone. What would the variable cost per cone have to be for Burundi Street to make a profit of Birr 8,000 per month?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of...

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