Mission Foods produces two flavors of tacos-chicken and fish-with the following characteristics. Chicken Fish $ 3.80 $ 5.50 Selling price per taco Variable cost per taco Expected sales (tacos) 1.90 2.75 195,000 300,000 The total fixed costs for the company are $125,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix would be 39 percent chicken and 61 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?

Mission Foods produces two flavors of tacos-chicken and fish-with the following characteristics. Chicken Fish $ 3.80 $ 5.50 Selling price per taco Variable cost per taco Expected sales (tacos) 1.90 2.75 195,000 300,000 The total fixed costs for the company are $125,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix would be 39 percent chicken and 61 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.…
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