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Homework answers / question archive / I Scream For Ice Cream sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty

I Scream For Ice Cream sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty

Accounting

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 gallon 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:

 

 

Rocky Road

Peanut Butter

Fruity Tooty

Sales price per gallon

 $5.50

 $4.00

 $3.50

Variable cost per gallon

 $3.00

 $2.00

 $2.50

 

The breakeven sales volume in gallons for I Scream For Ice Cream is

A) 5,400.

B) 7,500.

C) 3,857.

D) 13,500.

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