eBook Break-even sales The Boston Beer Company Inc. (SAM) produces Samuel Adams beer and other alcoholic beverages. Boston Beer reported the following operating information for a recent year (in thousands): Sales Cost of goods sold Selling, general, and administrative expenses Operating income *Before special items $2,684,000 732,000 $10,736,000 (3,416,000) $7,320,000* In addition, assume that Boston Beer sold 61,000 thousand barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and administrative expenses. Assume that the remaining costs are fixed. For the following year, assume that Boston Beer 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 $31.10 million. a. Compute the break-even number of barrels for the current year. Round to the nearest thousand of barrels. thousand barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest thousand of barrels. thousand barrels

Break-even sules The Boston Beer Company Inc, (SAM) sroduces Samuel Adams beer and other alcoholic beverages. Boston Beer reported the following operoting information for a recent year (in thourands): sales $10,736,000 Cost of poods wald $2,684,000 Seling. general, and administrative expenses 732,000(3,416,000) Operating income $7,320,000 *Defore special items In addeion, assume that Boston Beer sold 61,000 thousand barreis of beer during the year. Assume that variode costs were 75% of the cost of geods sold and 50% of soling, generat, and administrative expenses. Assume that the romaining costs are Fiked, For the following year, assume that Boston Beer expects pricing, varibble costs per barrel, and fixed costs to remain constant, except that new distribution and general office faciues are expected to increase fxed costs by 331.10 miltion. a. Compute the break-even number of barrels for the current yoar. Round to the nearest thousand of barrels. thousand barrels b. Comoute the anticipeted breakeven number of berreis for the following year, Round to the nearest thousand of barrels. thousand barrels