Question
Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics: Chicken Fish Selling price per taco $ 3.80 $ 4.80 Variable
Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics: Chicken Fish Selling price per taco $ 3.80 $ 4.80 Variable cost per taco 1.90 2.40 Expected sales (tacos) 205,000 302,000 The total fixed costs for the company are $121,000. Required: a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the product mix would be 38 percent chicken and 62 percent fish at the break-even point, compute the break-even volume. (In your computations, round up the total units to break-even to the nearest whole number and round other intermediate calculations to 2 decimal places. Round your final answers up to the nearest whole unit.)
Chicken tacos = ?
Fish tacos = ?
c. If the product sales mix were to change to four chicken tacos for each fish taco, what would be the new break-even volume? (In your computations, round up the total units to break-even to the nearest whole number and round other intermediate calculations to 2 decimal places. Round your final answers up to the nearest whole unit.)
Chicken tacos = ?
Fish tacos = ?
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