Question
Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics: Chicken Fish Selling price per taco $ 3.80 $ 4.70 Variable
Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics:
Chicken | Fish | |||||
Selling price per taco | $ | 3.80 | $ | 4.70 | ||
Variable cost per taco | 1.90 | 2.35 | ||||
Expected sales (tacos) | 193,000 | 299,000 | ||||
The total fixed costs for the company are $110,000.
Required:
a. What is the anticipated level of profits for the expected sales volumes?
Profit-
b. Assuming that the product mix would be 36 percent chicken and 64 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.)
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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.)
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