Gelbart Company manufactures gas grills. Fixed costs amount to $23,220,000 per year. Variable costs per gas grill are $400, and the average price per gas grill is $1,000. 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 40,820 gas grills in a year, what is the operating income? 3. If Gelbart Company’s variable costs increase to $420 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.

Gelbart Company manufactures gas grills. Fixed costs amount to $23,220,000 per year. Variable costs per gas grill are $400, and the average price per gas grill is $1,000. 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 40,820 gas grills in a year, what is the operating income? 3. If Gelbart Company’s variable costs increase to $420 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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...

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