Multiple-product profit analysis. Cisco's 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 (units)..................................................................................................... 200,000 300,000

The total fixed costs for the company are $200,000.

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?