Exercise I Early Horizons Day Care Center has fixed costs of $300,000 per year and variable costsof $10 per child per day. If it charges $25 a child per day, what will be its break-even pointexpressed in dollars of revenue? How much revenue would be required for Early Horizons DayCare to earn $100,000 net income per year?

The Break-even point is that level of production where the business makes no profit no loss. In…

ercise I Early Horizons Day Care Center nas fixed costs of $300 10 per child per day. If it charges $25 a child per day, what will ressed in dollars of revenue? How much revenue would be reqi e to earn $100,000 net income per year?

ercise I Early Horizons Day Care Center nas fixed costs of $300 10 per child per day. If it charges $25 a child per day, what will ressed in dollars of revenue? How much revenue would be reqi e to earn $100,000 net income per year?

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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Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
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