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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education