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
Introduction To Cost Accounting
ISBN: 9780538749633
1st International Edition
Authors: Don R. Hansen, Maryanne Mowen, Liming Guan, Mowen/Hansen
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