Question

The Salsa Shack sells three tacos for every two burritos. A taco sells for $2.00 and...

The Salsa Shack sells three tacos for every two burritos. A taco sells for $2.00 and has a variable cost of $1.00. A burrito sells for $5 and has a variable cost of $2.25. The Salsa Shack has fixed costs of $27,200. A. What is the weighted-average contribution margin? B. How many of each product does The Salsa Shack need to sell in order to breakeven (ie - how many tacos and how many burritos must be sold to breakeven)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Taco Burritos
Sales mix 3 2
PERCENTAGE Sales mix 60% 40%
Selling price 2 5
Variable cost 1 2.25
Contribution 1 2.75
Weighted contribution = 1 * 60% + 2.75*40%
1.7
Break even = Fixed cost / Weighted contribution margin per unit
    =27200/1.7
16000 Units
Units of Taco 9600 (16000*60%)
Units of Burritos 6400 (16000*40%)
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculate the total fixed costs, the variable costs per taco sold, and the number of tacos...
Calculate the total fixed costs, the variable costs per taco sold, and the number of tacos needed to sell in order to turn a $2,000 profit according to the data given in class. Total Fixed Costs: Add all fixed MONTHLY costs (break down any annual costs to monthly) Total Variable Costs: Add all variable PER UNIT costs (break everything down to a cost per unit made or sold) Taco Stand Case Study: Rent for your Stand - $600/month Meat for...
Sunbucks Coffee sells three small coffees for every one large ones. A small coffee sells for...
Sunbucks Coffee sells three small coffees for every one large ones. A small coffee sells for $4 per cup, with a variable cost of $2.00 per cup. A large coffee sells for $6 per cup with a variable cost of $3 per cup. What is the weighted-average contribution margin?             A. $2.25             B. $3.00             C. $2.50             D. $2.75
Dos Mfg Co. sells two products. Product A sells for $10 per unit with variable costs...
Dos Mfg Co. sells two products. Product A sells for $10 per unit with variable costs of $6 per unit. Product B sells for $20 per unit with variable costs of $12 per unit. Product A sells 75%, while B sells 25% of the total units sold. Currently, with combined sales of 20,000 units, the company made Total Revenue of $250,000, after subtracting variable cost got Total Contribution Margin of $100,000, and after subtracting Total Fixed Cost of $50,000, earned...
A firm manufactures a product that sells for $12 per unit. Variable cost per unit is...
A firm manufactures a product that sells for $12 per unit. Variable cost per unit is $8 and fixed cost per month is $1200. Capacity is 1000 units per month. a. How much is the contribution margin? __________ b. How much is the contribution rate? ___________ c. How many units must they sell per month in order to break even? _________ d. How many units must they sell in order to have a profit of $2,500 per month? ___________
Corporation sells three products; Good, Better, Best. Selling price and variable costs are as follows: Good...
Corporation sells three products; Good, Better, Best. Selling price and variable costs are as follows: Good Better Best Selling price per unit $15.00 $18.00 $25.00 Variable costs per unit Direct materials $5.00 $8.00 $10.00 Direct labor $2.00 $5.00 $8.00 Variable overhead $2.00 $2.00 $2.00 Variable selling $1.00 $1.00 $2.00 Fixed costs are $92,256 per month. The products are sold in the following proportions: 25% Good, 30% Better, and 45% Best. How many units of Product Better will need to be...
Coats R Us Inc., manufactures and sells men’s coats. Each coat sells for $150 and the...
Coats R Us Inc., manufactures and sells men’s coats. Each coat sells for $150 and the variable costs per coat is $80. The company’s fixed costs are $1,400,000. The company has an income tax rate of 50%. Compute contribution margin, contribution margin percentage, breakeven point in sales units, the revenues needed to breakeven? Coats R Us has a target monthly net income of $350,000. What is its target monthly operating income? How many coats must be sold each month to...
Sweet Bakery sells pastries and cupcakes. Usually, for every three pastries they sell one cupcake (which...
Sweet Bakery sells pastries and cupcakes. Usually, for every three pastries they sell one cupcake (which means, pastries : cupcake = 3:1). Each pastry has an BDT80 contribution margin, and each cupcake has a BDT60 contribution margin. Sweet Bakery’s fixed costs are BDT180,000 per month. The selling prices of pastries and cupcakes, respectively, are BDT300 and BDT150. The business is subjected to a 40 percent income tax rate. a. How much revenue is needed to break even? How many pastries...
BM Company sells two products, X and Y. Product X sells for $20 per unit with...
BM Company sells two products, X and Y. Product X sells for $20 per unit with variable costs of $11 per unit. Product Y sells for $30 per unit with variable costs of $16 per unit. During this period, BM sold 16,000 units of X and 4,000 units of Y, making Total Revenue of $440,000, and after subtracting variable cost got Total Contribution Margin of $200,000, and after subtracting Total Fixed Cost of $110,000, earned Operating Profit of $90,000. When...
1. A company's product sells for $150 and has variable costs of $60 associated with the...
1. A company's product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? a. $150 b. $90 c. $60 d. $40 2. A company's contribution margin per unit is $25. If the company increases its activity level from 200 units to 350 units, how much will its total contribution margin increase? a. $1,250 b. $8,750 c. $3,750 d. $5,000 3. If a company has fixed costs of $6,000 per...
(Ch6) BM Company sells two products, X and Y. Product X sells for $20 per unit...
(Ch6) BM Company sells two products, X and Y. Product X sells for $20 per unit with variable costs of $11 per unit. Product Y sells for $30 per unit with variable costs of $16 per unit. During this period, BM sold 16,000 units of X and 4,000 units of Y, making Total Revenue of $440,000, and after subtracting variable cost got Total Contribution Margin of $200,000, and after subtracting Total Fixed Cost of $110,000, earned Operating Profit of $90,000....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT