Question

I Scream For Ice Cream sells specialty ice cream in three​ flavors: Rocky​ Road, Peanut​ Butter, and Fruity Tooty. It sold​ 17,000 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​ $7,500 and additional information​ follows:
Rocky Road
Peanut Butter
Fruity Tooty
Sales price per gallon
​$6.00
​$5.00
​$5.25
Variable cost per gallon
​$5.25
​$4.50
​$4.00
The breakeven sales volume in gallons for I Scream For Ice Cream is

Answer 1

Weighted average contribution unit = (6-5.25*2/5)+(5-4.50*2/5)+(5.25-4*1/5) = 0.75

Break even sales = 7500/.75 = 10000 Gallons