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Assume that you plan to open a soft ice cream franchise in a resort community during the summer months

Marketing

Assume that you plan to open a soft ice cream franchise in a resort community during the summer months. The fixed operating costs for the three-month period are projected to be $5,650. Variable costs per serving include the cost of the ice cream and cone $0.50, and a franchise fee payable to Austrian Ice, AG, $0.15. A market analysis prepared by Austrian Ice indicates that summer sales in the resort community should total 24,000 units.

- Determine the price you should charge for each ice cream to achieve a $20,000 profit for the three-month period.

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