Mission Foods produces two flavors of tacos-chicken and fish - with the following characteristics.                                                       Chicken                Fish Selling price per taco           $         3.30           $       5.40 Variable cost per taco                      1.65                    2.70 Expected sales tacos                207,000                291,000   The total fixed costs for the company are $114,000.   Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix would be 36 percent chicken and 64 percent fish at the break-even point, compute the break-even volume using the 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? Complete this question by entering your answers in the tabs below. Required A a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix would be 36 percent chicken and 64 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? Complete this question by entering your answers in the tabs below. Required A What is the anticipated level of profits for the expected sales volumes? Required B Assuming that the product mix would be 36 percent chicken and 64 percent fish at the break-even point, compute the break-even volume using weighted-average contribution margin. Required C                                          Break-even Volume Chicken                             ________ tacos Fish                                   ________ tacos   Required C                                  Break-even Volume Chicken                     ________ tacos Fish                           ________ tacos

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...
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Mission Foods produces two flavors of tacos-chicken and fish - with the following characteristics.

 

                                                    Chicken                Fish

Selling price per taco           $         3.30           $       5.40

Variable cost per taco                      1.65                    2.70

Expected sales tacos                207,000                291,000

 

The total fixed costs for the company are $114,000.

 

Required:

a. What is the anticipated level of profits for the expected sales volumes?

b. Assuming that the product mix would be 36 percent chicken and 64 percent fish at the break-even point, compute the break-even volume using the 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?

Complete this question by entering your answers in the tabs below.

Required A

a. What is the anticipated level of profits for the expected sales volumes?

b. Assuming that the product mix would be 36 percent chicken and 64 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?

Complete this question by entering your answers in the tabs below.

Required A

What is the anticipated level of profits for the expected sales volumes?

Required B

Assuming that the product mix would be 36 percent chicken and 64 percent fish at the break-even point, compute the break-even volume using weighted-average contribution margin.

Required C

                                         Break-even Volume

Chicken                             ________ tacos

Fish                                   ________ tacos

 

Required C

                                 Break-even Volume

Chicken                     ________ tacos

Fish                           ________ tacos         

 

 

 

 

 

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