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?