rt Company manufactures gas grills. Fixed costs amount to $35,344,400 per year. Variable costs per gas grll ired: w many gas grills must Gelbart Company sell to break even? x gas grills Selbart Company sells 42,365 gas grills in a year, what is the operating income? Selbart Company's variable costs increase to $518 per grill while the price and fixed costs remain unchanged, x gas grills

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Break-Even in Units
Gelbart Company manufactures gas grills. Fixed costs amount to $35,344,400 per year. Variable costs per gas grill are $490, and the average price per gas grill is $1,400.
Required:
1. How many gas grills must Gelbart Company sell to break even?
х дas grills
2. If Gelbart Company sells 42,365 gas grills in a year, what is the operating income?
3. If Gelbart Company's variable costs increase to $518 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.
X gas grills
Transcribed Image Text:Break-Even in Units Gelbart Company manufactures gas grills. Fixed costs amount to $35,344,400 per year. Variable costs per gas grill are $490, and the average price per gas grill is $1,400. Required: 1. How many gas grills must Gelbart Company sell to break even? х дas grills 2. If Gelbart Company sells 42,365 gas grills in a year, what is the operating income? 3. If Gelbart Company's variable costs increase to $518 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. X gas grills
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