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 19,600 portable grills, 44,100 stationary grills, and 4,900 smokers. Information on the three models is as follows:

	Portable	Stationary	Smokers
Price	$85	$196	$250
Variable cost
per unit	45	134	144

Total fixed cost is $1,796,320.

	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.

Amount Descriptions:

Refer to the list below for the exact wording of text items within your income statement.

Amount Descriptions:
Operating income
Operating loss
Sales
Total contribution margin
Total fixed cost
Total variable cost

1. What is the sales mix of portable grills to stationary grills to smokers?

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

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

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

4. Compute the margin of safety for the coming year.

The margin of safety for the coming year is:

Texas- Company a Income Statement For the Coming Year 1 1 2 3 4 S