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Question
Secure https:/www.mathxl.com/Stude nt/PlayerTest.aspx?testld-1816086508icenterwin-yes ACCT 202-Routh, summer 2018 (online) Mitchell Mundy & 6/25/18 4:59 PM ntir Test: Exam (Module 3 -ch. 6, 7) Time Limit: 02:00:00 Submit Test nis Question: 5 pts 5 of 12 (3 complete) This Test: 43 pts possible I Scream For Ice Cream sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooly It sold 11,000galions last year For every fie galons of ice cream sold, one gallon is Fruity Tooty and the remainder is spit evenly between Peanut Butter and Rocky Road Fixed costs for I Scream For ice Cream are last year. For every five gallons of $65,100.00 and additional information follows Rocky Road $8.75 $2.25 Peanut ButterFruity Tooty $8.50 53.75 S7.25 S4.50 Sales price per gallon Variable cost per gallon The breakeven sales volume in gallons for I Scream For Ice Cream is OA. 13,020 O B. 4,650 ?. 14,000. O D. 2.366 to s your Ch 10 PerformanceExplanation / Answer
The Answer is” C. 14,000 “
The Break Even Sales volume in gallons = Total Fixed Costs / Average contribution
Contribution
Rocky Road = [$8.75 – 2.25] x 2 = $13.00
Peanut Butter = [$7.25 – 4.50] x 2 = $5.50
Fruity Tooty = [$8.50 – 3.75] x 1= $4.75
Average Contribuiton = [$13.00 + 5.50 + 4.75] / 5 = $4.65
The Break Even Sales volume in gallons
= Total Fixed Costs / Average contribution
= $65,100 / $4.65
= 14,000
Hence, The Answer is” C. 14,000 “