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221_Solutions_Chap_9_Sp_07

221_Solutions_Chap_9_Sp_07 - E9-16 Variable costs Ice cream...

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E9-16 Variable costs: Ice cream $0.25 Franchise fee 0.10 Total $0.35 Total revenue = Fixed costs + Variable costs + Profit Price × 24,000 = $5,250 + ($0.35 × 24,000) + $7,000 Price = $0.87 per cone Note: Must round up or else total profit will be slightly less than $7,000. 338
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