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Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Net sales Cost of goods sold Marketing, general and administration $9,072 $2,268
Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Net sales Cost of goods sold Marketing, general and administration $9,072 $2,268 630 $2,898 6,174 Income from operations Assume that Beer e sold 63 million barrels of beer during the year that varia lecosts were 75% of the cost of goods sold and 50% of marketing, general and administration expenses, and that the remaining costs are fixed. For the following year, assume that BeerBev expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $26.46 million a. Compute the break-even sales (in barrels) for the current year. Round your answer to the nearest whole barrel (do not round to the nearest million.) barrels b. Compute the anticipated break-even sales (in barrels) for the following year. Round your answer to the nearest whole barrel (do not round to the nearest million.) barrels
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