Answer:
$1,059,050
Explanation:
The computation of the anticipated level of profits for the expected sales volumes is shown below:
Expected sales 209,000 305,000
Particulars Chicken Fish
Sales $815,100 $1,525,000
Less:
Variable cost -$407,550 -$762,500
Contribution margin $407,550 $762,500
Now the profit would be
= Total contribution margin - total fixed cost
= $407,550 + $762,500 - $111,000
= $1,059,050
The sales are variable cost are come by multiplying the units with its price per taco.