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Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Net sales Cost of goods sold $3,648,000 $912,000 Selling, general, and
Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Net sales Cost of goods sold $3,648,000 $912,000 Selling, general, and administrative expenses 684,000 Income from operations $1,596,000 $2,052,000* Before special items In addition, assume that BeerBev sold 38,000 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 i costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $17,100, 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. 1,520,00 barrels b. Compute the anticipated break-even number of barrels for the following year. barrels
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