Exercise 3-47 (Static) Multiproduct CVP Analysis (LO 3-4) Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics. Chicken Fish Selling price per taco $ 3.00 $ 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. Required: 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. c. If the product sales mix were to change to four chicken tacos for each fish taco, what would be the new break-even volume?

Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business.the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?