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1. Wayne owns a shaved ice stand. He sells 700 shaved ice cups per month at $1.50 each, making the total revenue $1050. Each shaved ice costs Wayne $0.50 and he has fixed cost of $750, making his total cost $1100.Therefore, he realizes a loss of $50 a month. Help him determine what his break-even point is.
2. Based on the above Excel Problem; if the total capacity for this business is 725 will you stay in it? If you want to stay in it what price you need to obtain a break-even point of 725?
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Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed.
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