Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: $4,032,000 $1,008,000 432,000 $1,440,000 $ 2,592,000* Net sales Cost of goods sold Selling, general, and administrative expenses Income from operations *Before special items In addition, assume that BeerBev sold 36,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% 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 $14,000. When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place. a. Compute the break-even number of barrels for the current year. barrels b. Compute the anticipated break-even number of barrels for the following year. barrels
Break-Even Sales Beerbev, Inc, reported the following operating information for a recent year: *Before special items In addition, assume thot Beerbev sold 36,000 barreis of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling. general, and administration expenses, Assume that the remaining costs are foxed. For the following year, assume that Beerbev expects pricing, variable costs per barrel, and find costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $14,000. When computing the cost per unit amounts for the break-even formula, round to two decimal places, If required, round your final answer to one decimal place. a. Compute the break-even number of barrels for the current year. barrels b. Compute the anticipated break-even number of bartels for the following year. barrels