Contribution Margin Ratio, Break-Even Sales Revenue, and Margin of Safety for Multiple-Product Firm:

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Contribution Margin Ratio, Break-Even Sales Revenue, and Marginof Safety for Multiple-Product Firm:

Contribution Margin Ratio Break Even Sales Revenue And Margin Of Safety For Multiple Product Firm 1 (88.76 KiB) Viewed 9 times

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Instructions Amount Descriptions Instructions Price Variable cost per unit 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 14,400 portable grills, 52,800 stationary grills, and 4,800 smokers. Information on the three models is as follows: Portable $86 47 Total fixed cost is $2,126,600. Stationary $199 Sales Mix and Breakeven Contribution Margin Income Statement 130 Smokers $245 141 X 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 decimal places; round the break-even sales revenue to the nearest dollar. 4. Compute the margin of safety for the coming year.
Contribution Margin Ratio, Break-Even Sales Revenue, and Margin of Safety for Multiple-Product Firm Instructions Amount Descriptions Sales Mix and Breakeven Contribution Margin Income Statement Sales Mix and Breakeven 1. What is the sales mix of portable grills to stationary grills to smokers? 2. Compute the break-even quantity of each product. Break-Even Portable Grills Break-Even Stationary Grills Break-Even Smokers Contribution Margin Ratio Break-Even Revenue 3(a) What is the overall contribution margin ratio? Use the contribution margin ratio o 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. $ Amount Descriptions % Amount Descriptions Operating income Operating loss Sales Total contribution margin Total fixed cost Total variable cost H
Contribution Margin Ratio, Break-Even Sales Revenue, and Margin of Safety for Multiple-Product Firm Instructions Amount Descriptions Sales Mix and Breakeven Contribution Margin Income Statement Margin of Safety 4. Compute the margin of safety for the coming year. The margin of safety for the coming year is $