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The Johnny Pickles Brewing Company sells barrels of beer for $101. The variable expenses for...

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Accounting

The Johnny Pickles Brewing Company sells barrels of beer for $101. The variable expenses for each barrel of beer are $63. Fixed expenses for the brewery are $2250 per month. Average sales for the brewery are 108 barrels per month. Management is considering increasing the fixed advertising budget for the brewery $560 per month with the expectations that sales will increase by 42 barrels per month. Complete the analysis for this below

108

Barrels

Barrels

 Change
Sales
Variable Expenses
Contribution margin
Fixed expenses
Net operating income

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