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Please help! Also, please provide proof of work in order to understand how the answer was found. Thank you! Texas-Q Company produces and sells barbeque
Please help! Also, please provide proof of work in order to understand how the answer was found. Thank you!
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 16,500 portable grills, 55,000 stationary grills, and 5,500 smokers. Information on the three models is as follows:
*Variable cost per unit are the numbers in the 2nd row*
Portable | Stationary | Smokers | |
Price | $85 | $195 | $245 |
Variable cost | |||
per unit | 50 | 134 | 140 |
Total fixed cost is $1,779,400.
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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