I scream for ice cream sells specialty ice cream in three flavors: rocky road, peanut butter, and fruity tooty. it sold 19 comma 00019,000 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 comma 500$27,500 and additional information follows: rocky road peanut butter fruity tooty sales price per gallon $ 5.25$5.25 $ 5.75$5.75 $ 8.25$8.25 variable cost per gallon $ 3.5$3.5 $ 5$5 $ 2.25$2.25 the breakeven sales volume in gallons for i scream for ice cream is

The break-even sales volume in gallons for I scream ice-cream is calculated as follows:

[tex]\begin{tabular} {|p{2cm}|c|c|c|} & Rocky Road & Peanut Butter & Fruity Tooty\\[2ex] Sales price per gallon&\$5.25&\$5.75&\$8.25\\ Variable cost per gallon&\$3.50&\$5.00&\$2.25\\ Contribution margin/unit&\$1.75&\$0.75&\$6.00\\ Sales mix&2&2&1\\ Contribution margin&3.50&1.50&6.00 \end{tabular}[/tex]

The total sales mix is 5 and the total contribution margin is 11. This gives the weighted average contribution margin is given by 11 / 5 = 2.2

The break-even sales volume is given by (fixed cost + operating income) divided by the weighted average contribution margin.

This is given by ($27,500 + 0) / 2.2 = $12,500