Gelbart Company manufactures gas grills. Fixed costs amount to $27,069,900 per year. Variable costs per gas grill are $385, and the average price per gas grill is $1,100. Required: 1. H

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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Break-Even in Units

Gelbart Company manufactures gas grills. Fixed costs amount to $27,069,900 per year. Variable costs per gas grill are $385, and the average price per gas grill is $1,100.

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 41,825 gas grills in a year, what is the operating income?
$fill in the blank 2

3. If Gelbart Company's variable costs increase to $407 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

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