Business, 10.03.2020 20:03 destinyd10189
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 16,200 portable grills, 54,000 stationary grills, and 5,400 smokers.
Information on the three models is as follows:
Portable Stationary Smokers Price $86 $200 $252
Variable cost per unit 40 130 140
Total fixed cost is $2,071,000.
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. X Amount Descriptions
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Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas...
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