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If someone could help me with this, that would be great. I think I am on the rig

ID: 2365559 • Letter: I

Question

If someone could help me with this, that would be great. I think I am on the right path, but there are no examples on the book or internet to walk me through it. I have to see how it's done in order to get it. The book is a bit confusing to me. Thanks. Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Net sales $6,496,000 Cost of goods sold $1,624,000 Selling, general and administration $812,000 $2,436,000 Income from operations $ 4,060,000 In addition, assume that BeerBev sold 58,000 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 $24,400. a. Compute the break-even sales (barrels) for the current year. Round to the nearest whole barrel. barrels b. Compute the anticipated break-even sales (barrels) for the following year. Round to the nearest whole barrel. barrels

Explanation / Answer

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