Scenario 16-3 Peter Operates an Ice Cream Shop in the Center of Center

question 16

Short Answer

Scenario 16-3
Peter operates an ice cream shop in the center of Fairfield. He sells several unusual flavors of organic, homemade ice cream so he has a monopoly over his own ice cream, though he competes with many other firms selling ice cream in Fairfield for the same customers. Peter's demand and cost values for sales per day are given in the table below. (Everyone who purchases Peter's ice cream buys a double scoop cone because it's so delicious.)
-Refer to Scenario 16-3. What price should Peter charge to maximize his profits?

---

Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, usually used to assess liquidity.

Budget Committee

A group of key managers who are responsible for overall budgeting policy and for coordinating the preparation of the budget.

Detailed Budgets

Comprehensive financial plans that itemize future projected income and expenses.

Beginning Cash Balance

The amount of cash available at the start of a financial period.