Mission Foods produces two flavors of tacos, chicken, and fish, with the following characteristics:
Selling price per taco $ 3.00 S 4.50
Variable cost per taco 1.50 2.25
Expected sales (tacos) 200,000 300,000
The total fixed 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 break-even point, compute the break-even volume Round intermediate calculations to 2 decimal places.

= Expected sales of chicken × (Selling price per taco - Variable cost per taco) + Expected sales of fish × (Selling price per taco - Variable cost per taco) - total fixed cost

= 200,000 × ($3 - $1.50) + 300,000 × ($4.50 - $2.25) - $117,000

= $300,000 + $675,000 - $117,000

= $858,000

2. The break even volume is

Let we assume the sale units be X

So, total units sold for chicken = 40X

And, for the fish it is = 60X

Sale units of chicken × (Selling price per taco - Variable cost per taco) + Sale units of chicken × (Selling price per taco - Variable cost per taco) = Total Fixed cost

0.40X × (3 – 1.50) + 0.60X × (4.50 – 2.25) = $117,000

0.60X + 1.35X = $117,000

1.95X = $117,000

So, the X is 60,000 units

So for chicken it is 60,000 × 40% = 24,000 units

And for fish it is 60,000 × 60% = 36,000 units