Break-Even in UnitsGelbart 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 grills2. 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

Name: Break-Even in UnitsGelbart Company manufactures gas grills. Fixed cos
Uploaded: 2022-05-24T13:26:03.000Z
Channel: Bartleby
Description: Break-Even in UnitsGelbart 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

Business

Accounting

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

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

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...

See similar textbooks

Similar questions

Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Their sales mix s reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $25,000 per year. What are total variable costs for Morris with their current product mix? Calculate the number of units of each product that will need to be sold in order for Morris to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345.000 per year. What are total variable costs for Abilene with their current product mix? Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
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
Gelbart Company manufactures gas grills. Fixed costs amount to $16,192,800 per year. Variable costs per gas grill are $240, and the average price per gas grill is $600. 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 48,825 gas grills in a year, what is the operating income? $fill in the blank 2 3. If Gelbart Company’s variable costs increase to $252 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. fill in the blank 3 gas grills
Al-Naseem Company fixed costs are OMR 120,000 per year. The variable cost of each unit is OMR 6, and sold for OMR 22 per unit. The company sold 9,000 units during the prior year. (Ignore income taxes)Required1.Compute the break-even point in units. Answer 1: ........ 2.How many unit must the company sell to earn a target profit of OMR 20,000? Answer 2: ......
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 $20,688,000 per year. Variable costs per gas grill are $320, and the average price per gas grill is $800. Required: 1. How many gas grills must Gelbart Company sell to break even? gas grills 2. If Gelbart Company sells 46,730 gas grills in a year, what is the operating income? 3. If Gelbart Company’s variable costs increase to $336 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