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?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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