Mission foods produces two flavors of tacos, chicken and fish, with the following characteristics. The total fixed costs for the company are $117,000. A. What is the anticipated level of profits for the expected sales volumes? B. Assuming that the product mix would be 40 percent chicken and 60 percent fish at the break-even point, compute the break even volume. 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. The total fixed costs for the company are $117,000. A. What is the anticipated level of profits for the expected sales volumes? B. Assuming that the product mix would be 40 percent chicken and 60 percent fish at the break-even point, compute the break even volume. 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Mission foods produces two flavors of tacos, chicken and fish, with the following characteristics.
The total fixed costs for the company are $117,000.
A. What is the anticipated level of profits for the expected sales volumes?
B. Assuming that the product mix would be 40 percent chicken and 60 percent fish at the break-even point, compute the break even volume.
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?
Transcribed Image Text:Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics.
Fish
Chicken
Selling price per taco
Variable cost per taco
Expected sales (tacos)
3.00
1.50
200,000
24
4.50
2.25
300,000
The total fixed costs for the company are $117,000.
Required:
a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the product mix would be 40 percent chicken and 60 percent fish at the break-even point, compute the break-even
volume.
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 40 percent chicken and 60 percent fish at the break-even point, compute the break-
even volume. (Round intermediate calculations to 2 decimal places.)
Break-even Volume
Chicken
Fish
tacos
tacos
< Required A
Required C>
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