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Castlegar Brewing Corporation sells two different types of beer, Lager and Stout. Lagers sell for $5.25 a can and have variable costs of $1.75. Stouts
Castlegar Brewing Corporation sells two different types of beer, Lager and Stout. Lagers sell for $5.25 a can and have variable costs of $1.75. Stouts sell for $6 a can and have variable costs of $1.85. Monthly fixed costs are expected to be $35,000. a) For the months of April-September, they expect to sell 5 cans of lager for every 2 cans of stout. Calculate the # of cans (round to the nearest whole unit)of each type of beer that need to be sold to reach an operating profit level of $25,000 for these months. (4 marks) b) For the months of October-March they expect to sell 2 cans of lager for every 3 cans of stout. Calculate the # of cans (round to the nearest whole unit) of each type of beer that need to be sold to reach an operating profit level of $25,000 for these months. (4 marks)
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