BeerBev, Inc., reported the following operating information for a recent year: Net sales $9,760,000 Cost of goods sold $2,440,000 Selling, general, and administrative expenses 610,000 $3,050,000 Income from operations $6,710,000 Before special items In addition, assume that BeerBev sold 61,000 barrels of beer during the year. Assume that variable costs wer and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that costs to remain constant, except that new distribution and general office facilities are expected to increase fix When computing the cost per unit amounts for the break-even formula, round to two decimal place place.

BeerBev, Inc., reported the following operating information for a recent year: Net sales $9,760,000 Cost of goods sold $2,440,000 Selling, general, and administrative expenses 610,000 $3,050,000 Income from operations $6,710,000 Before special items In addition, assume that BeerBev sold 61,000 barrels of beer during the year. Assume that variable costs wer and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that costs to remain constant, except that new distribution and general office facilities are expected to increase fix When computing the cost per unit amounts for the break-even formula, round to two decimal place place.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 26BEA

See similar textbooks

Similar questions

Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%
Evans Company had total sales of 3,000,000 for fiscal 20x5. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution. 3. What if, five years from now, quality costs are 7.5 percent of sales, with control costs being 65 percent of the total quality costs? What would your conclusion be?
Bradshaw Company reported sales of 5,000,000 in 20X1. At the end of the fiscal year (June 30, 20X1), the following quality costs were reported: Required: 1. Prepare a quality cost report. 2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution. 3. Assuming sales of 5,000,000, by how much would profits increase if quality improves so that quality costs are only 3% of sales?
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 91,800 units at a price of $93 per unit during the current year. Its income statement for the current year is as follows: Sales $8,537,400 Cost of goods sold 4,216,000 Gross profit $4,321,400 Expenses: Selling expenses $2,108,000 Administrative expenses 2,108,000 Total expenses 4,216,000 Income from operations $105,400 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $744,000 in yearly sales. The expansion will increase fixed costs by $74,400, but will not affect the relationship between sales and variable costs. Required: 1. Determine the…
Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 101,250 units at a price of $84 per unit during the current year. Its income statement for the current year is as follows: Sales $8,505,000 Cost of goods sold 4,200,000 Gross profit $4,305,000 Expenses: Selling expenses $2,100,000 Administrative expenses 2,100,000 Total expenses 4,200,000 Income from operations $105,000 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $672,000 in yearly sales. The expansion will increase fixed costs by $67,200, but will not affect the relationship between sales and variable costs. Required: 1. Determine the…
Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 121,500 units at a price of $60 per unit during the current year. Its income statement for the current year is as follows: Sales $7,290,000 Cost of goods sold 3,600,000 Gross profit $3,690,000 Expenses: Selling expenses $1,800,000 Administrative expenses 1,800,000 Total expenses 3,600,000 Income from operations $90,000 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $660,000 in yearly sales. The expansion will increase fixed costs by $66,000, but will not affect the relationship between sales and variable costs. Required: 1. Determine the…
Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 106,650 units at a price of $45 per unit during the current year. Its income statement for the current year is as follows: Sales $4,799,250 Cost of goods sold 2,370,000 Gross profit $2,429,250 Expenses: Selling expenses $1,185,000 Administrative expenses 1,185,000 Total expenses 2,370,000 Income from operations $59,250 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $450,000 in yearly sales. The expansion will increase fixed costs by $45,000, but will not affect the relationship between sales and variable costs. Required: 1. Determine the…
Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 108,000 units at a price of $84 per unit during the current year. Its income statement for the current year is as follows: Sales $9,072,000 Cost of goods sold 4,480,000 Gross profit $4,592,000 Expenses: Selling expenses $2,240,000 Administrative expenses 2,240,000 Total expenses 4,480,000 Income from operations $112,000 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $756,000 in yearly sales. The expansion will increase fixed costs by $75,600, but will not affect the relationship between sales and variable costs. Required: 1. Determine the…
Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 83,700 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows: Sales $4,017,600 Cost of goods sold 1,984,000 Gross profit $2,033,600 Expenses: Selling expenses $992,000 Administrative expenses 992,000 Total expenses 1,984,000 Income from operations $49,600 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $336,000 in yearly sales. The expansion will increase fixed costs by $33,600, but…
Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 83,700 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows: Sales $4,017,600 Cost of goods sold 1,984,000 Gross profit $2,033,600 Expenses: Selling expenses $992,000 Administrative expenses 992,000 Total expenses 1,984,000 Income from operations $49,600 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $336,000 in yearly sales. The expansion will increase fixed costs by $33,600, but…
Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 83,700 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows: Sales $4,017,600 Cost of goods sold 1,984,000 Gross profit $2,033,600 Expenses: Selling expenses $992,000 Administrative expenses 992,000 Total expenses 1,984,000 Income from operations $49,600 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $336,000 in yearly sales. The expansion will increase fixed costs by $33,600, but…