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Multiple-product profit analysis. Ciscos Sumptuous Burritos produces two burritos, chicken and steak, with the following characteristics: Chicken Steak Selling Price per unit $4 $6 Variable
Multiple-product profit analysis.
Ciscos Sumptuous Burritos produces two burritos, chicken and steak, with the following characteristics:
Chicken | Steak | |
Selling Price per unit | $4 | $6 |
Variable Cost per unit | $2 | $3 |
Expected Sales | 200,000 | 300,000 |
a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the product mix would be 40 percent chicken and 60 percent steak at the break-even point, compute the break-even volume.
c. If the product sales mix were to change to four chicken burritos for each steak burrito, what would be the new break-even volume?
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