Shellenberger Company manufactures high-end gas grills. Fixed costs amount to $19,980,000 per year. Variable costs per gas

Question:

Shellenberger Company manufactures high-end gas grills. Fixed costs amount to

$19,980,000 per year. Variable costs per gas grill are $395, and the average price per gas _ |

grill is $950.

Required:

1. How many gas grills must Shellenberger Company sell to break even?

2. If Shellenberger Company sells 41,000 gas grills in a year, what is the operating income?

3. If Shellenberger Company’s variable costs increase to $420 per grill while the price and fixed costs remain unchanged, what is the new break-even point? (Round up to the next higher whole unit.)

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Related Book For  book-img-for-question

Introduction To Cost Accounting

ISBN: 9780538749633

1st International Edition

Authors: Don R. Hansen, Maryanne Mowen, Liming Guan, Mowen/Hansen

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