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Chapter 21 HMWK eBook 1. PE.21.01.ALGO Break-Even Sales 2. PE.21.02.ALGO BeerBev, Inc., reported the following operating information for a recent year: 3. PE.21.03.ALGO Net sales
Chapter 21 HMWK eBook 1. PE.21.01.ALGO Break-Even Sales 2. PE.21.02.ALGO BeerBev, Inc., reported the following operating information for a recent year: 3. PE.21.03.ALGO Net sales $6,240,000 $1,560,000 4. EX.21.01 Cost of goods sold Selling, general, and administrative expenses 702,000 5. EX.21.03 $2,262,000 Income from operations $ 3,978,000* 6. EX.21.05 7. EX.21.07.ALGO *Before special items 8. EX.21.08.ALGO In addition, assume that BeerBev sold 39,000 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 $22,200. 9. EX.21.12.ALGO 10. EX.21.13.ALGO 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. 11. EX.21.14.ALGO a. Compute the break-even number of barrels for the current year. barrels 12. EX.21.21.ALGO b. Compute the anticipated break-even number of barrels for the following year. barrels
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