Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year (in millions): $6,688 Sales $1,672 Cost of goods sold $5,016 Gross profit 456 Marketing, general, and admin. expenses $ 4,560 Income from operations Assume that BeerBev sold 38 million barrels of beer during the year, that variable costs were 75% of the cost of goods sold and 50% of marketing, general and administration expenses, and 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 $19.38 million. a. Compute the break-even sales (in barrels) for the current year. Round your answer to two decimal places. Enter your answers in millions.

Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year (in millions): $6,688 Sales $1,672 Cost of goods sold $5,016 Gross profit 456 Marketing, general, and admin. expenses $ 4,560 Income from operations Assume that BeerBev sold 38 million barrels of beer during the year, that variable costs were 75% of the cost of goods sold and 50% of marketing, general and administration expenses, and 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 $19.38 million. a. Compute the break-even sales (in barrels) for the current year. Round your answer to two decimal places. Enter your answers in millions.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 35P

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