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Shannon's distributes its beer through a wholesaler, Miller of Denton. The retail selling price for a six pack of its typical craft beer is $12.00.
Shannon's distributes its beer through a wholesaler, Miller of Denton. The retail selling price for a six pack of its typical craft beer is $12.00. The retailer's cost per six pack is $8.00. The wholesaler sells the beer to the retailer for this price. Shannon's sells a six pack to the wholesaler for $5.40. Shannon's variable costs of production, packaging, and distribution are $3.60 per six pack. Shannon's has the following annual fixed operating and marketing costs: Marketing Costs $53,747 Consumer Advertising $33,488 Trade Promotion $30,000 Sales Promotion $18,000 What is Shannon's annual break-even in six-packs of beer sold
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