Question
Break-Even in Units Gelbart Company manufactures gas grills. Fixed costs amount to $37,849,500 per year. Variable costs per gas grill are $525, and the average
Break-Even in Units
Gelbart Company manufactures gas grills. Fixed costs amount to $37,849,500 per year. Variable costs per gas grill are $525, and the average price per gas grill is $1,500.
Required:
1. How many gas grills must Gelbart Company sell to break even? fill in the blank 1 gas grills
2. If Gelbart Company sells 42,175 gas grills in a year, what is the operating income? $fill in the blank 2
3. If Gelbart Company's variable costs increase to $555 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. fill in the blank 3 gas grills
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started