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multiproduct cvp analysis mission foods produces two flvors of tacos chicken and fis 690912

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?

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