Multiproduct CVP Analysis
Mission Foods produces two flvors of tacos, chicken and fish, with the following characteristics:
|
Chicken |
Fish |
Selling price per taco |
$3.00 |
$ 4.50 |
Variable cost per taco |
$1.50 |
$ 2.25 |
Expected sales (tacos) |
200,000 |
300,000 |
Required
The total filed costs for the company are $117,000.
a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the product mix would be 40 percent chicken and 60 percent fish at the breakeven point, compute the break even volume.
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?