Lechon sells two types of burritos chicken and steakselling, Ask an Expert

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Lechon sells two types of burritos: chicken and steak

Selling price per unit $4 for chicken, $6 for steak

Variable cost per unit $2 for chicken, $3 for steak

Estimated sales (units) 200,000 for chicken, 300,000 for steak

a. what is the anticipated level of profits at the expected sales volume?

b. Assuming the product mix is 40% chicken and 60% steak at the break-even point, what is the break-even volume?

c. If the sales mix changes to 4 chicken burritos for every one steak burrito; what would be the new break-even volume be?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92806817

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