Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics.

	Chicken			Fish
Selling price per taco	$	3.20		$	5.20
Variable cost per taco		1.60			2.60
Expected sales (tacos)		191,000			307,000

The total fixed costs for the company are $115,000.

Required:

a. What is the anticipated level of profits for the expected sales volumes?

Profit

b. Assuming that the product mix would be 38 percent chicken and 62 percent fish (based on sales volume) at the break-even point, compute the break-even volume using weighted-average contribution margin.

Break-even Volume

Chicken		tacos
Fish		tacos

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?

Chicken		tacos
Fish		tacos