Question
Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics. ChickenFishSelling price per taco$3.30$4.50Variable cost per taco1.652.25Expected sales (tacos)206,000303,000 The total fixed costs
Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics.
ChickenFishSelling price per taco$3.30$4.50Variable cost per taco1.652.25Expected sales (tacos)206,000303,000
The total fixed costs for the company are $114,000.
Required:
a.What is the anticipated level of profits for the expected sales volumes?
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 using weighted-average contribution margin.
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?
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a To calculate the anticipated level of profits we need to subtract the total variable costs and tot...
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
