Break-even sales The Boston Beer Company Inc. (SAM) produces Samuel Adams beer and...
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Accounting
Breakeven sales
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:
Sales
$
Cost of goods sold
$
Selling, general, and administrative expenses
Operating income
Before special items
In addition, assume that Boston Beer sold thousand barrels of beer during the year. Assume that variable costs were of the cost of goods so and of selling, general, and administrative expenses. Assume that the remaining costs are fixed. For the following year, assume 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 $ million.
a Compute the breakeven number of barrels for the current year. Round to the nearest thousand of barrels. thousand barrels
b Compute the anticipated breakeven number of barrels for the following year. Round to the nearest thousand of barrels. thousand barrels
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