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Break-even sales and sales to realize operating income For the current year ended March 31, Kadel Company expects fixed costs of $577 , 500 ,
Break-even sales and sales to realize operating income For the current year ended March 31, Kadel Company expects fixed costs of $577 , 500 , a unit variable cost of $52 , and a unit selling price of $77 . a. Compute the anticipated break-even sales (units). X units b. Compute the sales (units) required to realize operating income of $132 , 500 . units 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): In addition, assume that Boston Beer sold 65,000 thousand barrels of beer during the year. Assume that variable costs were 75% of the cost o goods sold and 50% of selling, general, and administrative expenses. Assume that the remaining costs are fixed. For the following year, assum 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 $31.20 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 For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? million b. What is McDonald's contribution margin ratio? Round to one decimal place. % c. How much would operating income increase if same-store sales increased by $1 , 000 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place). \$ million
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