BreakEven Sales
BeerBev, Inc., reported the following operating information for a recent year:
Before special items
In addition, assume that BeerBev sold barrels of beer during the year. Assume that variable costs were of the cost of goods sold and of selling, general,
and administration expenses. Assume 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 $
When computing the cost per unit amounts for the breakeven formula, round to two decimal places. If required, round your final answer to one decimal
place.
a Compute the breakeven number of barrels for the current year.
barrels
b Compute the anticipated breakeven number of barrels for the following year.
barrels
