Question

AutoSave B A 2 8 File IMA Case Study - Snowies Shaved Ice Excel Template ... Page Layout Formulas Data Review View Help Search Home Insert Draw di Part 1 1 Part 1 3 Data 4 Selling price per large Snowie 4.00 0.20 0.02 0.08 0.01 6 Ice per Snowie 7 Spoon straw (need one per Snowie) 8 Styrofoam cup (need one per Snowie) 9 Napkin (need two per Snowie) 10 Servings per gallon of syrup 11 Cost per gallon of syrup (includes concentrate, preservative, and sugar) 12 Hourly rate for workers 13 Event registration fee per day 14 Electricity, insurance, maintenance, and permit costs per month 15 Kiosk rental cost per month 16 Purchase cost of two ice shavers (5-year life) 17 Purchase cost of a flavor station (5-year life) 19 Requirements 4.25 10.00 25.00 250.00 650.00 3,180.00 1,080.00 21 1. Assumptions to be filled in): 22 a. Number of days you anticipate opening the kiosk per month 23 b. Number of hours you will work (no wages required) per day 24 c. Number of hours you will pay an employee to work in the kiosk per day 25 Part 1 Part 2 Part 3 Select destination and press ENTER or choose Puste 1 Type here to search o Be w NX

Answer 1

Answer is given below for Break Even point

6 Selling price $4.00 Variable cost Ice Spoon straw Styronfoam cup Napkin syrup Total Variable Cost $0.02 $0.15 $0.47 $3.53 Contribution per unit (Selling price - Variable Cost) $2,400 $750 $250 Fixed Cost Labor Event Registration fee Electricity, Insurance Kiosk Rental Depreciation on ice cream shavers Depreciation on flavour station Total Fixed Cost $650 S53 $18 $4,121 Break Even point Fixed Cost Contribution per unit $4,121 1,168 ) $3.53 Rounded off to 1,168 units 7 Units to Sell to achieve target profit Fixed Cost +Target Profit Contribution per unit $6,121 $3.53 1,735 Rounded off to 1,735 units