Question
Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics: Chicken Fish Selling price per taco $ 3.00 $ 4.50 Variable
Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics:
| Chicken | Fish | |||||
| Selling price per taco | $ | 3.00 | $ | 4.50 | ||
| Variable cost per taco | 1.50 | 2.25 | ||||
| Expected sales (tacos) | 200,000 | 300,000 | ||||
| The total fixed costs for the company are $117,000. a. What is the anticipated level of profits for the expected sales volumes? Profit b.Assuming that the product mix would be 40 percent chicken and 60 percent fish at the break-even point, compute the break-even volume. (Round intermediate calculations to 2 decimal places.) Chicken Fish 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 Fish
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