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Mission Foods produces two flavors of tacos-chicken and fish-with the following characteristics. Chicken Fish Selling price per taco Variable cost per taco $ 3.80
Mission Foods produces two flavors of tacos-chicken and fish-with the following characteristics. Chicken Fish Selling price per taco Variable cost per taco $ 3.80 $ 4.90 1.90 Expected sales (tacos) 202,000 2.45 298,000 The total fixed costs for the company are $116,000. 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?
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