Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

image text in transcribed

image text in transcribed \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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler

5th Edition

0471542830, 9780471542834

More Books

Students also viewed these Accounting questions

Question

2. Outline the business case for a diverse workforce.

Answered: 1 week ago