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How many gas grills must Gelbart Company sell to break even? gas grills

If Gelbart Company sells 47,525 gas grills in a year, what is the operating income?

User Pinas
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1 Answer

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Final answer:

To find the break-even point and operating income for Gelbart Company's gas grills, specific financial details such as fixed costs, variable costs, and selling price per unit are needed. Without this information, we are unable to calculate these figures.

Step-by-step explanation:

To determine how many gas grills must be sold to break even, we need to know the fixed costs, variable costs per unit, and selling price per grill. The break-even point is calculated by dividing the total fixed costs by the contribution margin per unit, which is the selling price per unit minus the variable cost per unit. Without this information, we cannot provide as requested.

Regarding the operating income, if the company sells 47,525 gas grills in a year, we can calculate the operating income by subtracting the total costs (fixed and variable) from the total revenue. The formula for operating income is Total Revenue - Total Costs = Operating Income. Operating income will illustrate the financial performance of the company after covering all operating expenses but before accounting for interest and taxes. Again, without specifics on the costs and revenue per unit, it's impossible to provide the operating income figure.

For an accurate calculation, please provide the fixed costs, variable cost per grill, and the selling price per grill for the Gelbart Company.

User AkselK
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