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Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics. Chicken Fish Selling price per taco $ 3.80 $ 5.00 Variable cost per

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

Chicken Fish
Selling price per taco $ 3.80 $ 5.00
Variable cost per taco 1.90 2.50
Expected sales (tacos) 199,000 302,000

The total fixed costs for the company are $120,000.

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?

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