FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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Break-Even in Units
Gelbart Company manufactures gas grills. Fixed costs amount to $11,418,000 per year. Variable costs per gas grill are $200, and the average price per gas grill is $500.
Required:
1. How many gas grills must Gelbart Company sell to break even?
gas grills
2. If Gelbart Company sells 41,785 gas grills in a year, what is the operating income?
3. If Gelbart Company's variable costs increase to $210 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
Transcribed Image Text:Break-Even in Units
Gelbart Company manufactures gas grills. Fixed costs amount to $11,418,000 per year. Variable costs per gas grill are $200, and the average price per gas grill is $500.
Required:
1. How many gas grills must Gelbart Company sell to break even?
gas grills
2. If Gelbart Company sells 41,785 gas grills in a year, what is the operating income?
3. If Gelbart Company's variable costs increase to $210 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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