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The Johnny Pickles Brewing Company sells barrels of beer for $101. The variable expenses for each barrel of beer are $63. Fixed expenses for the
The Johnny Pickles Brewing Company sells barrels of beer for $101. The variable expenses for each barrel of beer are $63. Fixed expenses for the brewery are $2250 per month. Average sales for the brewery are 108 barrels per month. Management is considering increasing the fixed advertising budget for the brewery $560 per month with the expectations that sales will increase by 42 barrels per month. Complete the analysis for this below
108 Barrels |
Barrels | Change | |
Sales | |||
Variable Expenses | |||
Contribution margin | |||
Fixed expenses | |||
Net operating income |
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