Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics: Chicken Fish...

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Accounting

Mission Foods produces two flavors of tacos, chicken and fish,with the following characteristics: Chicken Fish Selling price pertaco $ 3.60 $ 5.40 Variable cost per taco 1.80 2.70 Expected sales(tacos) 191,000 305,000 The total fixed costs for the company are$116,000.

b. Assuming that the product mix would be 45 percent chicken and55 percent fish at the break-even point, compute the break-evenvolume.

Break-even Volume

Chicken tacos ?

Fish tacos ?

c. If the product sales mix were to change to four chicken tacosfor each fish taco, what would be the new break-even volume?

Break-even Volume

Chicken tacos ?

Fish tacos?

Answer & Explanation Solved by verified expert
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Calculation of Contribution per unit for both flavors Chicken Sale price per unit Variable cost per unit 36 18 18 per unit Fish Sale price per unit Variable cost    See Answer
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