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Category > Management Posted 19 Jan 2018 My Price 7.00

Cisco’s Sumptuous Burritos

25.       Multiple-product profit analysis. Cisco’s Sumptuous Burritos produces two burritos, chicken and steak, with the following characteristics:

 

 

Chicken

Steak

Selling  Price    per   Unit.......................................................................................................

$4

$6

Variable     Cost     per     Unit ......................................................................................................

$2

$3

Expected Sales  (units) .....................................................................................................

200,000

300,000

 

The total fixed costs for the company are   $200,000.

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 steak at the break-even point, compute the break-even volume.

c.       If the product sales mix were to change to four chicken burritos for each steak burrito, what would be the new break-even volume?

 

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Maurice Tutor
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Status NEW Posted 19 Jan 2018 11:01 PM My Price 7.00

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