Break-Even Sales

BeerBev, Inc., reported the following operating information for a recent year:

Sales	$10,384,000
Cost of goods sold	$2,596,000
Selling, general and administration	826,000
	$3,422,000
Income from operations	$ 6,962,000
2 seperate questions. any help is greatly apreciated

In addition, assume that BeerBev sold 59,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general and administration expenses. Assume 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 $31,900.

a. Compute the break-even sales (barrels) for the current year. Round to the nearest whole barrel. barrels

b. Compute the anticipated break-even sales (barrels) for the following year. Round to the nearest whole barrel. barrels

Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $29,100 $10,517 7,300 6,213 4,200 $28,230 $870 Income from operations Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) million b. What is Wicker Company's contribution margin ratio? Round to one decimal place c. How much would income from operations increase if same-store sales increased by $1,700 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million million Check My Work 1 more Check My Work uses remaining Previous Next