BreakEven Sales
BeerBev, Inc., reported the following operating information for a recent year in millions:
Sales $
Cost of goods sold $
Gross profit $
Marketing, general, and admin. expenses
Income from operations $
Assume that BeerBev sold million barrels of beer during the year, that variable costs were of the cost of goods sold and of marketing, general and administration expenses, and that the remaining costs are fixed. For the following year, assume that BeerBev 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 $ million.
a Compute the breakeven sales in barrels for the current year. Round your answer to two decimal places. Enter your answers in millions.
fill in the blank
million barrels
b Compute the anticipated breakeven sales in barrels for the following year. Round your answer to two decimal places. Enter your answers in millions.
fill in the blank
million barrels
