BeerBev, Inc., reported the following operating information for a recent year: Net sales Cost of goods sold Selling, general, and administrative expenses Income from operations $8,928,000 $2,232,000 620,000 $2,852,000 $ 6,076,000* *Before special items I In addition, assume that BeerBev sold 62,000 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 $26,000. 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

BeerBev, Inc., reported the following operating information for a recent year: Net sales Cost of goods sold Selling, general, and administrative expenses Income from operations $8,928,000 $2,232,000 620,000 $2,852,000 $ 6,076,000* *Before special items I In addition, assume that BeerBev sold 62,000 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 $26,000. 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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