Question
Gelbart Company manufactures gas grills. Fixed costs amount to $25,428,000 per year. Variable costs per gas grill are $350, and the average price per gas
Gelbart Company manufactures gas grills. Fixed costs amount to $25,428,000 per year. Variable costs per gas grill are $350, and the average price per gas grill is $1,000.
1. How many gas grills must Gelbart Company sell to break even?
___ gas grills
2. If Gelbart Company sells 42,235 gas grills in a year, what is the operating income? $__
3. If Gelbart Companys variable costs increase to $370 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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