Stacy Kuh, the Manager of the Ice Cream Igloo, Has

Essay

Stacy Kuh, the manager of the Ice Cream Igloo, has been told that to earn a reasonable profit she should price her products at 200% of the cost of ingredients. Ms. Kuh has gathered the following data on the cost of ingredients used to make a banana split:
-The distributor charges $12 for a dozen bananas; each banana split uses one banana.
-Ice cream costs $3.20 per litre; each banana split uses two scoops of ice cream.
-One litre of ice cream equals eight scoops of ice cream.
-Stacy makes her own fruit toppings at a cost of $0.25 per tablespoon; each banana split uses six tablespoons of fruit toppings.
-Each banana split uses three tablespoons of premium chocolate sauce, which costs $0.25 per tablespoon.
-The cost of other miscellaneous ingredients, such as whipped cream and nuts, totals $0.05 per banana split.
a)Calculate the cost of a banana split.
b)List two factors that could cause these estimated costs to be inaccurate.