Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill,...

Question

Question

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationa

1. What is the sales mix of portable grills to stationary grills to smokers? 2. Compute the break-even quantity of each produ

3(b) Prepare an income statement for Texas-Q for the coming year. Refer to the list of Amount Descriptions for the exact word

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

business accounting

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Answer 1

Answer #1

ans 1
	Portable gills	Stationery gills	Smokers	Total
sales in units	19600	44100	4900	68600
sales mix in sales ratio	0.29	0.64	0.07
	19600/68600

ans 2
working
	Portable gills	Stationery gills	Smokers	Total
Sales in units S	19600	44100	4900
sales price per gill	86	198	245
Sales revenue R	1685600	8731800	1200500
Variable cost per unit V	43	126	144
Variable cost C=S*V	842800	5556600	705600
Contribution margin R-C	842800	3175200	494900
Contribution per unit	43	72	101
sales mix	0.29	0.64	0.07
Total contribution per unit C	12.47	46.08	7.07	65.62
Fixed cost F				2026200
Total breakeven F/C				30878

Break even	8955	19762	2161
	30878*.29	30878*.64	30878*.07


ans 3
Income statement
	Portable gills	Stationery gills	Smokers	Total
Sales revenue R	1685600	8731800	1200500	11617900
Variable cost	842800	5556600	705600	7105000
Contribution margin	842800	3175200	494900	4512900
Less: fixed cost				2026200
Operating income				2486700

Contribution margin ratio
4512900/11617900*100	38.84	%

Break even revenue	in $
2026200/.3884	5216787

ans 4
Margin of safety
Budgeted sales-Break even revenue
11617900-5216787	6401113

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Answer 2

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