Question
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
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 $ 3.20 $ 1.60 4.60 2.30 205,000 307,000 The total fixed costs for the company are $125,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix would be 41 percent chicken and 59 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 What is the anticipated level of profits for the expected sales volumes? Profit
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