I Scream for Ice Cream Sells Specialty Ice Cream in Three

question 26

Multiple Choice

I Scream For Ice Cream sells specialty ice cream in three flavors: Rocky Road,Peanut Butter,and Fruity Tooty.It sold 15,000 gallons last year.For every five gallons of ice cream sold,one pound is Fruity Tooty and the remainder is split evenly between Peanut Butter and Rocky Road.Fixed costs for I Scream For Ice Cream are $27,000 and additional information follows:

Breakeven sales in dollars for I Scream For Ice Cream is

• A)$22,275.
• B)$17,357.
• C)$60,750.
• D)$33,750.

---

Definitions:

Product Requirements

Specifications or criteria that must be met for products to satisfy customer needs or regulatory standards.

Local Facilities

Physical locations or buildings situated within a specific area or community, serving as operational centers for businesses, services, or public use.

Compete on Price

A strategy where businesses attract customers and gain market share by offering lower prices than their competitors.

Transportation Cost

Expenses incurred in moving goods from one place to another, including shipping fees, fuel costs, and labor.