Question
Break-Even in Units Gelbart Company manufactures gas grills. Fixed costs amount to $38,592,000 per year. Variable costs per gas grill are $600, and the average
Break-Even in Units
Gelbart Company manufactures gas grills. Fixed costs amount to $38,592,000 per year. Variable costs per gas grill are $600, and the average price per gas grill is $1,500.
Required:
1. How many gas grills must Gelbart Company sell to break even? _______ gas grills
2. If Gelbart Company sells 45,175 gas grills in a year, what is the operating income? _______
3. If Gelbart Companys variable costs increase to $630 per grill while the price and fixed costs remain unchanged, what is the new break-even point? If required, round your answer to the nearest whole number. _______ gas grills
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