What is anticipated level of profits for the expected sale

Reference no: EM13903357

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?

Reference no: EM13903357

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