Break - Even Sales Cold One Beverage Company reported the following operating information for a recent year (in millions): Line Item Description Amount Net sales $3,600 Cost of goods sold (900) Gross profit $2,700 Selling, general, and admin. expenses (350) Operating income $2,350 Assume that Cold One sold 25 million barrels during the year, variable costs were 70% of the cost of goods sold and 50% of selling, 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 $13.35 million. a. Compute the break-even sales (barrels) for the current year. Round intermediate computations to the nearest cent and final answer up the nearest whole barrel fill in the blank 1 of 1 million barrels b. Compute the anticipated break - even sales (barrels) for the following year. Round intermediate computations to the nearest cent and final answer up to the nearest whole barrel fill in the blank 1 of 1 million barrels
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- 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 Marketing, general, and admin. expenses Income from operations $7,104 (1,776) $5,328 (518) $ 4,810 Assume that Cold One sold 37 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 $21.09 million. a. Compute the break-even sales (barrels) for the current year. Round your answer to two decimal places. Enter your answers in millions. X million barrels b. Compute the anticipated break-even sales (barrels) for the following year. Round your answer to two decimal places. Enter…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 Marketing, general, and admin. expenses Income from operations $4,592 (1,148) $3,444 (492) $ 2,952 Assume that Cold One sold 41 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 $15.99 million. a. Compute the break-even sales (barrels) for the current year. Round your answer to two decimal places. Enter your answers in millions. million barrels b. Compute the anticipated break-even sales (barrels) for the following year. Round your answer to two decimal places. Enter your…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: Net sales $4,400,000 Cost of goods sold $1,100,000 Selling, general and administration 250,000 $1,350,000 Income from operations $ 3,050,000* *Before special items In addition, assume that BeerBev sold 25,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, gener and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that BeerBev expects pricing, variable costs per barrel, and fixe costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $12,000. When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place. a. Compute the break-even number of barrels for the current year. barrels b. Compute the anticipated break-even…Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Net sales $10,560,000 Cost of goods sold $2,640,000 Selling, general, and administrative expenses 990,000 $3,630,000 Income from operations $ 6,930,000* *Before special items In addition, assume that BeerBev sold 55,000 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 $34,700. When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place. a. Compute the break-even number of barrels for the current year. fill in the…Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Net sales $7,168,000 Cost of goods sold $1,792,000 Selling, general, and administrative expenses 784,000 $2,576,000 Income from operations $ 4,592,000* *Before special items In addition, assume that BeerBev sold 56,000 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 $25,200. When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place. a. Compute the break-even number of barrels for the current year.fill in the…
- Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Net sales $10,384,000 Cost of goods sold $2,596,000 Selling, general and administration 1,062,000 $3,658,000 Income from operations $ 6,726,000* *Before special items In addition, assume that BeerBev sold 59,000 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 $35,400. When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place. a. Compute the break-even number of barrels for the current year.fill in the blank 1…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 105,300 units at a price of $105 per unit during the current year. Its income statement for the current year is as follows: Sales $11,056,500 Cost of goods sold 5,460,000 Gross profit $5,596,500 Expenses: Selling expenses $2,730,000 Administrative expenses 2,730,000 Total expenses 5,460,000 Income from operations $136,500 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 $840,000 in yearly sales. The expansion will increase fixed costs by $84,000, 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 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 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…6. Determine the maximum operating income possible with the expanded plant. 4,350,000 x 7. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year? 35,730,000 x IncomeDetermine 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 72,900 units at a price of $63 per unit during the current year. Its income statement for the current year is as follows: Sales $4,592,700 Cost of goods sold 2,268,000 Gross profit $2,324,700 Expenses: Selling expenses $1,134,000 Administrative expenses 1,134,000 Total expenses 2,268,000 Income from operations $56,700 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 $378,000 in yearly sales. The expansion will increase fixed costs by $37,800, but will not affect the relationship between sales and variable costs. Required: 6. Determine the…