The Town Brewery

History:

The Town Brewery is a microbrewery located in the suburbs just north west of Boston, and local beer enthusiasts are devoted and passionate for their unique and hearty ales.Founded in 1993, The Town Brewery originally became popular for its American Pale Ale, a crafted English ale, distinguished by its use of American ingredients of Cascade and Nugget hops.Pale amber in color, its malty character and crisp clean hop finish is what distinguishes this ale from the others.

A microbrewery is a small brewery, which is known for producing craft beer.By definition, a microbrewery is a brewery that produces less than 15,000 barrels of beer a year.Over the past ten years, the number of microbreweries has grown considerably, as beer lovers continue to search for their perfect taste.

The production process:

The production of beer is a simple process that transforms malts, hops and yeast into beer.First the malts are selected.The types of malts will determine the flavor, color and style of the beer.The malts are grinded and mixed with hot water to make wort.Wort is basically a sweet unfermented beer, and will be the food the yeast will need to make alcohol.Next, for additional flavor, the wort is boiled and the hops are added.After cooling, adding yeast will be the start of the fermenting process.The beer will then be stored in fermenting tanks for about two weeks, at which time it will be carbonated and packaged.

About the data:

The variable selling expenses relate to the commission paid to the sales staff when they sell a case of beer.The commission is paid when the sales person successfully makes a sale either by phone or from a sales visit.Once the sale is made, the product is shipped to the customer.The variable delivery costs relates to the costs of delivering the case of beer.

The following data was for an entire year of operations and the decisions presented were all decisions that were actually considered by the brewery.Please use only relevant information when completing the case.

One case of Pale Ale per unit Selling price Variable costs malts hops yeast packaging *ot her production costs shipping selling Fixed Costs Salary brewer Salalry driver rent truck depreciation promotion exp current volume 26,000 cases {24 beers in a case) *5 gallons of water for every gallon of beer, C02, utilities, taxes total fixed up to 28,000 capacity