Mission Foods produces two flavors of tacos, chicken and fish,with the following characteristics:
| Chicken | | Fish | |
| Selling price pertaco | $ | 3.00 | | $ | 4.50 | |
| Variable cost per taco | | 1.50 | | | 2.25 | |
| Expected sales (tacos) | | 200,000 | | | 300,000 | |
The total fixed costs for the company are $117,000.
a. What is the anticipated level of profits forthe expected sales volumes? Profit
b.Assuming that the product mix would be 40 percent chicken and 60percent fish at the break-even point, compute the break-evenvolume. (Round intermediate calculations to 2 decimalplaces.) Chicken
Fish
c.If the product sales mix were to change to four chicken tacosfor each fish taco, what would be the new break-even volume?(In your computations, round up the total units tobreak-even to the nearest whole number and round other intermediatecalculations to 2 decimal places. Round your final answers up tothe nearest whole unit.) Chicken Fish |
