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Break-Even Sales BeerBev, Inc., reported the following operating information for a recent...

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Accounting

Break-Even Sales
BeerBev, Inc., reported the following operating information for a recent year (in millions):
Sales $4,000
Cost of goods sold $1,000
Gross profit $3,000
Marketing, general, and admin. expenses 250
Income from operations $ 2,750
Assume that BeerBev sold 25 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 $11.25 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.
fill in the blank 1
million barrels
b. Compute the anticipated break-even sales (in barrels) for the following year. Round your answer to two decimal places. Enter your answers in millions.
fill in the blank 2
million barrels

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