Shannon’s distributes its beer through a wholesaler, Miller of Denton.  The retail selling price for a six pack of its typical craft beer is $12.00.  The retailer’s cost per six pack is $8.00.  The wholesaler sells the beer to the retailer for this price.  Shannon’s sells a six pack to the wholesaler for $5.40.  Shannon’s variable costs of production, packaging, and distribution are $3.60 per six pack.  Shannon’s has the following annual fixed operating and marketing costs:   Marketing Costs  $52,405 Consumer Advertising  $31,017 Trade Promotion  $30,000 Sales Promotion  $18,000   What is Shannon’s annual break-even in six packs of beer sold?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Shannon’s distributes its beer through a wholesaler, Miller of Denton.  The retail selling price for a six pack of its typical craft beer is $12.00.  The retailer’s cost per six pack is $8.00.  The wholesaler sells the beer to the retailer for this price.  Shannon’s sells a six pack to the wholesaler for $5.40.  Shannon’s variable costs of production, packaging, and distribution are $3.60 per six pack.  Shannon’s has the following annual fixed operating and marketing costs:

 

Marketing Costs

 $52,405

Consumer Advertising

 $31,017

Trade Promotion

 $30,000

Sales Promotion

 $18,000

 

What is Shannon’s annual break-even in six packs of beer sold?

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