Question
Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics. Chicken Fish Selling price per taco $ 3.60 $ 5.00 Variable cost per
Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics.
Chicken | Fish | |||||
Selling price per taco | $ | 3.60 | $ | 5.00 | ||
Variable cost per taco | 1.80 | 2.50 | ||||
Expected sales (tacos) | 207,000 | 298,000 | ||||
The total fixed costs for the company are $124,000.
Required:
a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the product mix would be 35 percent chicken and 65 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?
Assuming that the product mix would be 35 percent chicken and 65 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.)
\begin{tabular}{|l|l|l|} \hline & \multicolumn{2}{|c|}{ Break-even Volume } \\ \hline Chicken & & tacos \\ \hline Fish & & tacos \\ \hline \end{tabular} Complete this question by entering your answers in the tabs below. If the product sales mix were to change to four chicken tacos for each fish taco, what would be the new break-even volume? (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.)
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