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What is the new break-even point

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Question - 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.

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?

Reference no: EM132576535

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