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Instructions Amount Descriptions Sales Mix and Breakeven Instructions Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a
Instructions Amount Descriptions Sales Mix and Breakeven Instructions 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 14,100 portable grills, 47,000 stationary grills, and 4,700 smokers. Information on the three models is as follows: Portable Stationary Smokers Price $90 $203 $246 Variable cost per unit 46 130 139 Total fixed cost is $2,112,420. 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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