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Gelbart Company manufactures gas grills. Fixed costs amount to $32,510,400 per year. Variable costs per gas grill are $520, and the average price per gas grill is $1,300. Required: 1. How many gas grills must Gelbart Company sell to break even

Respuesta :

Answer:

the number of gas grills must Gelbart Company sell to break even is 41,680 gas grills

Explanation:

The computation of the number of gas grills must Gelbart Company sell to break even is given below:

= Fixed cost ÷ contribution margin per unit

= $32,510,400 ÷ ($1,300 - $520)

= $32,510,400 ÷ $780

= 41,680 gas grills

Hence, the number of gas grills must Gelbart Company sell to break even is 41,680 gas grills