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, 49,500 stationary grills, and 5,500 smokers. Information on the three models is as follows:

	Portable	Stationary	Smokers
Price	$88	$203	$246
Variable cost
per unit	46	128	140

Total fixed cost is $1,986,330.

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.