Tasty ice cream is a year-round take-out ice cream, Operation Management

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Tasty ice cream is a year-round take-out ice cream

Tasty Ice Cream is a year-round take-out ice cream restaurant that is considering offering an additional product, hot chocolate. Considering the additional machine it would need plus cups and ingredients, it estimates fixed costs to be $201 per year and the variable cost to be $0.15. If it charges $1.06 for each hot chocolate, how many hot chocolates does it need to sell in order to break even?

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Operation Management: Tasty ice cream is a year-round take-out ice cream

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