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4-34 Texas-Q products produces three products: Portable grill $90 Stationary Grill Smo $250 $200 Price Variable cost per unit Est. number sold 45 20 130 50,000 5,000 The total fixed cost is $2,128,500. 1. Form a package based on the sales mix expected for the coming year: Step 2 Step 1 Price- Unit variable Unit contribution Sales Mix- Package unit Product contribution margn Portable grill Stationary Grill Smoker Package total Step 3: calculate break-even packages: Step 4: calculate break-even units per product Portable grill- Stationary Grill- Smoker - Step 5: Total Sales Total Variable Cost Total Contribution Margin Total Fixed Cost Operating income Compute contribution margin (round to 4 decimals) Compute break-even sales revenue (round to nearest dollar): Compute the margin of safety for the coming year:
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