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 13,500 portable grills, 49,500 stationary grills, and 4,500 smokers. Information on the three models is as follows:

	Portable	Stationary	Smokers
Price	$87	$196	$253
Variable cost
per unit	48	127	138

Total fixed cost is $2,130,650.

	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.

2. Compute the break-even quantity of each product.

Break-Even Portable Grills
Break-Even Stationary Grills
Break-Even Smokers

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1. See text section "Determining the Sales Mix."

3(a) 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.

Contribution Margin Ratio	%
Break-Even Revenue

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Divide total contribution margin by sales. Divide fixed costs by contribution margin ratio.