Mission Foods produces two flavors of tacos, chicken and fish, with the followin

Question

Mission Foods produces two flavors of tacos, chicken and fish, with the following character Chicken Pish selling price per $ taco Variable cost per taco Expected sales 3.70 S 4.60 -q.IS ).,3?')/9.? - . 1.85 2.30 .1 191,000 291,000 e, kan Fish I ? TODDT : SI)00 .bal?? a3.-60. 8675 The total fixed costs for the company are $111,000. 145, 500 x',55 Required: ,975 a. What is the anticipated level of profits for the expected sales volumes? 130, ,oduct miscomputationalni..).byer, b. Assuming that the product mix would be 45 percent chicken and 55 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.)L,,975 ,58 Break Even Volume I1,peo - 02,0os 1,387

Explanation / Answer

Solution: Chicken Fish Total Selling Price Per taco 3.7 4.6 Variable Cost per taco 1.85 2.3 Contribution per Taco 1.85 2.3 Total Sales 191000 291000 No of Taco 51621.62 63260.87 Total Contribution 95500 145500 241000 Less: Fixed Cost 111000 a) Profit for the expected sales volume 130000 b) The mix is 45% 55% Contribution Mix 0.8325 1.265 2.0975 Total Fixed Cost 111000 Break Even Units 23814 29106 52920 c) The mix is 80% 20% Contribution Mix 1.48 0.46 1.94 Total Fixed Cost 111000 Break Even Units 45773 11443 57216

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