Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics. ChickenFishSelling price...
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Accounting
Mission Foods produces two flavors of tacoschicken and fishwith the following characteristics.
ChickenFishSelling price per taco$3.40$4.80Variable cost per taco1.702.40Expected sales (tacos)200,000297,000
The total fixed costs for the company are $112,000.
Required:
b.Assuming that the product mix would be 38 percent chicken and 62 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?
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