Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please solve on a spreadsheet and do comment if this is the right subject for such questions Neil brews two types of beer, Barley Wine
please solve on a spreadsheet and do comment if this is the right subject for such questions
Neil brews two types of beer, Barley Wine and Oatmeal Stouts. He began selling his brew in litre bottles in January 2022. The popular Barley Wine sells for $33 per litre and Oatmeal Stouts for $25.75 per litre. Neil's per unit variable costs for Barley Wine include $7.05 in raw materials, $0.50 in packaging, $1.05 in manufacturing overhead, and $0.25 in shipping. The per unit variable costs for Oatmeal Stouts include $6.75 in raw materials, $0.50 in packaging, $1.25 in manufacturing overhead, and $0.25 in shipping. Neil's fixed costs include office rent of $28,000, office supplies of $2,500, and marketing expenses of $5,000 Create a spreadsheet with the following: 1. Lay out all inputs and calculate the income position of Neil's business should he sell 1200 litres of Barley Wine and 1200 litres of Oatmeal Stouts, assuming that fixed expenses are divided equally between the two beers. 2. Assume a unit-to-unit sale, what is a more profitable brew for Neil? 3. Determine the contribution margin and break-even for each beer. 4. Provide a chart showing the break-even point for each brew Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started