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Mission Foods produces two flavors of tacos-chicken and fish-with the following characteristics. Selling price per taco Variable cost per taco Expected sales (tacos) Chicken Fish
Mission Foods produces two flavors of tacos-chicken and fish-with the following characteristics. Selling price per taco Variable cost per taco Expected sales (tacos) Chicken Fish 3.50 $ 4.90 1.75 201,000 2.45 295,000 The total fixed costs for the company are $120,000. Required: a. What is the anticipated level of profits for the expected sales volumes? 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 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? Complete this question by entering your answers in the tabs below. Required A Required B Required 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 Break-even Volume tacos tacos < Prev 9 of 10 Next >
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