Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Net sales $4,400,000 Cost of goods sold $1,100,000 Selling, general and administration 250,000 $1,350,000 Income from operations $ 3,050,000* *Before special items In addition, assume that BeerBev sold 25,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, gener and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that BeerBev expects pricing, variable costs per barrel, and fixe costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $12,000. When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place. a. Compute the break-even number of barrels for the current year. barrels b. Compute the anticipated break-even number of barrels for the following year. barrels Previous Next Check My Work 5 more Check My Work uses remaining. Email l nctructor Save and Exit Suhmit Assignment for Grad
Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Net sales $4,400,000 Cost of goods sold $1,100,000 Selling, general and administration 250,000 $1,350,000 Income from operations $ 3,050,000* *Before special items In addition, assume that BeerBev sold 25,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, gener and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that BeerBev expects pricing, variable costs per barrel, and fixe costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $12,000. When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place. a. Compute the break-even number of barrels for the current year. barrels b. Compute the anticipated break-even number of barrels for the following year. barrels Previous Next Check My Work 5 more Check My Work uses remaining. Email l nctructor Save and Exit Suhmit Assignment for Grad
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 12E: Break-even sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a...
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