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Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year (in millions): Sales $8,096 Cost of goods sold $2.024 Gross profit $6,072
Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year (in millions): Sales $8,096 Cost of goods sold $2.024 Gross profit $6,072 Marketing, general, and admin. expenses 460 Income from operations $ 5,612 Assume that BeerBev sold 46 million barrels of beer during the year, that variable costs 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 the costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $22.08 million a. Compute the break-even sales (in barrels) for the current year. Round your answer to two decimal places. Enter your answers in millions million barrels b. Compute the anticipated break-even sales (in barrels) for the following year. Round your answer to two decimal places. Enter your answers in millons million barrels
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