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

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Question

Mission foods produces two flavors of tacos-chicken and fish- with the following characteristics.

a) $1,070,500

B) need help

Mission Foods produces two flavors of tacos-chicken and fish-with the following characteristics.
Chicken
Fish
Selling price per taco
Variable cost per taco
Expected sales (tacos)
3.80
5.50
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?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
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. (In your computations, round up the total units to break-even to
the nearest whole number and round other intermediate calculations to 2 decimal places. Round your final answers
nearest whole unit.)
to the
Show less
Break-even Volume
Chicken
tacos
Fish
tacos
< Required A
Required C >

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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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