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Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas...

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Accounting

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 18,800 portable grills, 51,700 stationary grills, and 4,700 smokers. Information on the three models is as follows:

Portable

Stationary

Smokers
Price $91 $196 $254
Variable cost
per unit 46 133 145

Total fixed cost is $2,101,480.

Required:
1. What is the sales mix of portable grills to stationary grills to smokers?
2. Compute the break-even quantity of each product.
3. Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places; round the break-even sales revenue to the nearest dollar.
4. Compute the margin of safety for the coming year.

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