Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the boston beer company inc. (sam) produces samuel

The Boston Beer Company Inc. (SAM) produces Samuel Adams beer and other alcoholic beverages. Boston...

50.1K

Verified Solution

Question

Accounting

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):

Line Item Description Amount Amount
Sales $5,760,000
Cost of goods sold $1,440,000
Selling, general, and administrative expenses 560,000 (2,000,000)
Operating income $3,760,000*

*Before special items

In addition, assume that Boston Beer sold 40,000 thousand barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% 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 $19.20 million.

a. Compute the break-even number of barrels for the current year. Round to the nearest thousand of barrels. fill in the blank 1 of 1 thousand barrels

b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest thousand of barrels. fill in the blank 1 of 1 thousand barrels

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Tell what ways you can have a bad and good credit score.Tell what ways...

Accounting
Q

Consider the titration of a 23.0 −mL sample of 0.180 M CH3NH2 with 0.145 M HBr....

Chemistry
Q

Janet is 22, and college student that recently moved out onto her own. She works part...

Medical Sciences
Q

Is the increase in substance abuse and/or drinking in college age women attributed to increase in...

Psychology
Q

(a) A firm has two independent stores operating in two markets. Each store experiences daily demand...

General Management
Q

An ecologist recorded 12 white-tailed deer, Odocoileus virginianus, per square milein one woodlot and 20...

Biology
Q

27 9

Biology
Q

i Define electric flux Write its SI unit ii A uniform electric field for x...

Physics
Q

y 2 cot 3x Drag the movable red point to set the asymptotes for one...

Geometry
Q

Find the missing quantities for the following circle Use the key for Radius Circumference Radius...

Algebra
Q

! Required information [The following information applies to the questions displayed below.] ...

Accounting
Q

1. Evaluate the following three projects, using the profitability index. Assume a cost of capital...

Accounting