Mutliple-product profit analysis. Cisco's Sumptuous Burritos produces two burritos, chicken and steak, with the following characterisitics:

Selling Price per Unit.....................Chicken $4 Steak $6

Variable Cost per unit ...................Chicken $2 Steak $3

Expected Sales (units)..................Chicken 200,000 Steak 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 prodcut 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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