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:
Rocky Road Peanut Butter Fruity Tooty
Sales price per pound $5.50 $4.00 $3.50
Variable cost per pound $3.00 $2.00 $2.50
The sales mix percentage of Fruity Tooty based upon pounds is
A) 71%.
B) 40%.
C) 75%.
D) 20%.
D
Explanation: D)
Rocky Road 2
Peanut Butter 2
Fruity Tooty 1
Total 5
Sales mix Peanuts 1/5 = 20%
You might also like to view...
Which statement is not true about nonresponse issues in sampling?
A) Nonresponse error is one of the most significant problems in survey research. B) Response rates themselves do not indicate whether the respondents are representative of the original sample. C) For a given study, if the nonrespondents differ from the respondents on the characteristics of interests, the sample estimates will only be mildly biased. D) Increasing the response rate may not reduce nonresponse bias.
Health insurance benefits are rarely included in any collective bargaining agreements
Indicate whether the statement is true or false