ch7-45-I have asked this question earlier and i found a possible miscalculation for the total variable costs in step 3. Please check and confirm.ch7-Q#45Texas-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 20,000 portable grills, 50,000 stationary grills, and 5,000 smokers. Information on the three models is as follows: PortableStationarySmokersPrice$90$205$252Variable cost per unit46132140 Total fixed cost is $2,219,240. 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.

Break-even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No…

Answered: Texas-Q Company produces and sells…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 41E

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ch7-45-

I have asked this question earlier and i found a possible miscalculation for the total variable costs in step 3. Please check and confirm.

ch7-Q#45

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 20,000 portable grills, 50,000 stationary grills, and 5,000 smokers. Information on the three models is as follows:

	Portable	Stationary	Smokers
Price	$90	$205	$252
Variable cost
per unit	46	132	140

Total fixed cost is $2,219,240.

	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.

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