4.value: 10.00 points Mission Foods produces two flavors of tacos, chicken and f

Question

4.value: 10.00 points Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics: Chicken Fish Selling price per taco $ 3.30 $ 5.10 Variable cost per taco 1.65 2.55 Expected sales (tacos) 204,000 304,000 The total fixed costs for the company are $109,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix would be 44 percent chicken and 56 percent fish at the break-even point, compute the break-even volume. (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 up to the nearest whole unit.) 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? (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 up to the nearest whole unit.)

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Chicken   Fish Total Selling price per taco                             3.30                         5.10 Variable cost per taco                             1.65                         2.55 Contribution per taco = SP- VC                             1.65                         2.55 Expected sales in units                204,000.00            304,000.00 Total contribution                336,600.00            775,200.00        1,111,800.00 Fixed Costs            109,000.00 Income        1,002,800.00 b) Contribution per taco = SP- VC                             1.65                         2.55 Product Mix 44% 56% Weighted contribution                             0.73                         1.43                         2.15 Fixed costs            109,000.00 Break even volume = 109000/2.15                  22,265.55              28,337.98              50,603.53 c) Contribution per taco = SP- VC                             1.65                         2.55 Product Mix 80% 20% Weighted contribution                             1.32                         0.51                         1.83 Fixed costs            109,000.00 Break even volume = 109000/2.15                  47,650.27              11,912.57              59,562.84

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