The Colorado Catering Company specializes in preparing Mexican dinners to sell to restaurants.

| March 14, 2016

The Colorado Catering Company specializes in preparing Mexican dinners to sell to restaurants. The budget data for 2015 are as follows:

Decisions about the sales mix do not affect the fixed expenses which are $680,000

REQUIRED:

Compute the planned net income for 2015.

Compute the BEP in units assuming that the company maintains its planned sales mix.

Determine the BEP if the company only sells Tacos

Determine the BEP if the company only sells Enchiladas

Suppose the company sells 225,000 units of Tacos and 75,000 units of enchiladas. Compute the BEP in with this new sales mix. Comment about your findings

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