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 14,400 portable grills, 43,200 stationary grills, and 4,800 smokers. Information on the three models is as follows:

	Portable	Stationary	Smokers
Price	$92	$202	$251
Variable cost
per unit	46	131	138

Total fixed cost is $1,922,400.

Download Excel spreadsheet

	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.
Amount Descriptions
Operating income
Operating loss
Sales
Total contribution margin
Total fixed cost
Total variable cost
4.	Compute the margin of safety for the coming year.