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Mission Foods produces two flavors of tacos-chicken and fish-with the following characteristics. Fish Selling price per taco Variable cost per taco Expected sales (tacos)
Mission Foods produces two flavors of tacos-chicken and fish-with the following characteristics. Fish Selling price per taco Variable cost per taco Expected sales (tacos) Chicken $ 3.90 $ 5.00 1.95 2.50 195,000 293,000 The total fixed costs for the company are $115,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix would be 39 percent chicken and 61 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 Assuming that the product mix would be 39 percent chicken and 61 percent fish at the break-even point, compute the break- even volume using weighted-average contribution margin. (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 Show less
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