Answer
--requirement 1
| A | Average Price | $600 | |
| B | Variable cost | $225 | |
| C = A - B | Contribution margin per unit | $375 | |
| D | Fixed Cost | $16,335,000 | |
| E = D/C | Break even point | 43560 | Answer |
--Requirement 2
| A | Units sold | 46775 | |
| B | Contribution margin per unit | $375 | |
| C = A x B | Total Contribution margin | $17,540,625 | |
| D | Fixed Cost | $16,335,000 | |
| E = C-D | Operating Income | $1,205,625 | Answer |
--Requirement 3
| A | Average Price | $600 | |
| B | Variable cost | $240 | |
| C = A - B | Contribution margin per unit | $360 | |
| D | Fixed Cost | $16,335,000 | |
| E = D/C | New Break even point | 45375 | Answer |
Break-Even in Units Gelbart Company manufactures gas grills. Fixed costs amount to $16,335,000 per year. Variable...
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