Use This Information to Answer the Following Questions -Refer to the Table Above

question 26

Essay

Use this information to answer the following questions.
Joe Smith operates an ice cream shop and works only three days a week.The number of ice cream cones that he sells is shown as follows.
$$\begin{array} { | l | c | c | c | c | c | } \hline \text { Friday } & 100 & 114 & 110 & 115 & 112 \\\hline \text { Saturday } & 130 & 135 & 140 & 145 & 142 \\\hline \text { Suraday } & 60 & 65 & 55 & 50 & 63 \\\hline\end{array}$$
-Refer to the table above.Use a linear trend line to forecast ice cream sales for the next three days.

Understand the significance of fixed and variable costs in product pricing and profitability analysis.

Identify and calculate the total contribution margin under variable costing.

Differentiate between gross margin and contribution margin in costing approaches.

Understand the impact of cost structure decisions on financial performance and reporting.