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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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