Question
Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics. ChickenFishSelling price per taco$3.60$5.10Variable cost per taco1.802.55Expected sales (tacos)193,000296,000 The total fixed costs
Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics.
ChickenFishSelling price per taco$3.60$5.10Variable cost per taco1.802.55Expected sales (tacos)193,000296,000
The total fixed costs for the company are $113,000.
Required:
a.What is the anticipated level of profits for the expected sales volumes?
b.Assuming that the product mix would be 37 percent chicken and 63 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?
Can I have a break down of equations and things please?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started