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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 24
Break-Even in Units
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 Company's variable costs increase to $240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
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 Company's variable costs increase to $240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
Explanation
Verified
Verified
1. The Break even is appoint where there...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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