Exercise 7-45 Contribution Margin Ratio, Break-Even Sales Revenue, and Margin of Safety for Multiple-Product Firm 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 20,000 portable grills, 50,000 stationary grills, and 5,000 smokers. Information on the three models is as follows:

	Portable	Stationary	Smokers
Price	$ 90	$ 200	$ 250
Variable Cost Per unit	$ 45	$ 130	$ 140

Total fixed cost: $2,128,500

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. (Note: Round the contribution margin ratio to four decimal places; round the break-even sales revenue to the nearest dollar.) 4. Compute the margin of safety for the coming year.