Break-Even Sales Cold One Brewing Company reported the following operating information for a recent year (in millions): Sales Cost of goods sold Gross profit $5,472 (1,368) $4,104 Marketing, general, and admin. expenses (456) Income from operations $ 3,648 Assume that Cold One sold 38 million barrels of beer during the year, variable costs were 75% of the cost of goods sold and 50% of marketing, general, and administrative expenses, and that the remaining costs are fixed. For the following year, assume that Cold One 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 $17.1 million. a. Compute the break-even sales (barrels) for the current year. Round your answer to two decimal places. Enter your answers in millions. 9.3 X million barrels b. Compute the anticipated break-even sales (barrels) for the following year. Round your answer to two decimal places. Enter your answers in millions. 3,565.1 X million barrels

Break-Even Sales Cold One Brewing Company reported the following operating information for a recent year (in millions): Sales Cost of goods sold Gross profit $5,472 (1,368) $4,104 Marketing, general, and admin. expenses (456) Income from operations $ 3,648 Assume that Cold One sold 38 million barrels of beer during the year, variable costs were 75% of the cost of goods sold and 50% of marketing, general, and administrative expenses, and that the remaining costs are fixed. For the following year, assume that Cold One 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 $17.1 million. a. Compute the break-even sales (barrels) for the current year. Round your answer to two decimal places. Enter your answers in millions. 9.3 X million barrels b. Compute the anticipated break-even sales (barrels) for the following year. Round your answer to two decimal places. Enter your answers in millions. 3,565.1 X million barrels

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 12E: Break-even sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a...

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