Question
Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics. Chicken Fish Selling price per taco $ 3.30 $ 4.90 Variable cost per
Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics.
Chicken | Fish | |||||
Selling price per taco | $ | 3.30 | $ | 4.90 | ||
Variable cost per taco | 1.65 | 2.45 | ||||
Expected sales (tacos) | 193,000 | 293,000 | ||||
The total fixed costs for the company are $126,000.
Required:
b. Assuming that the product mix would be 41 percent chicken and 59 percent fish at the break-even point, compute the break-even volume using weighted-average contribution margin.
Assuming that the product mix would be 41 percent chicken and 59 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.)
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