Portable Stationary Smokers Price $90 $200 $250 Variable cost pcr unit 45 130 140

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 3.3C
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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 three models follows:

Total fixed cost is $2,128,500.

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 breakeven sales revenue. (Note: Round the contribution margin ratio to four decimal places; round the break-even sales revenue to the nearest dollar.)

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

Portable Stationary
Smokers
Price
$90
$200
$250
Variable cost pcr unit
45
130
140
Transcribed Image Text:Portable Stationary Smokers Price $90 $200 $250 Variable cost pcr unit 45 130 140
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