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Question: using 2013's actual data and sales mix, how many total cases would need to be sold in order to earn $50,000 after-tax? How many of these cases would be Ocotillo Amber Pilsner?

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Exhibit 1: 2013 Cost and Sales Info
Per Case Info
Contribution Margin Income Statement
Saguaro Pale Ale
Bisbee Bock
Ocotillo Amber
Sedona Stout
Total
Saguaro Pale
Ale
Bisbee Bock
Ocotillo
Sedona Stout
Total
Pilsner
Amber Pilsner
Sales Price
21.00 $
24.50 $
23.50 $
26.50
Sales
$ 264,453.00 $ 174,587.00 $ 160,434.50 $ 110,876.00 $710,350.50
DM per case
2.75
2.90
3.15
$
4.00
VC
$ 156,153.20
$ 91,426.58
$ 83,630.75
$ 65,228.56
$ 396,439.09
DL per case
3.75
$
3.75
$
3.00
$
5.25
CM
$ 108,299.80
$ 83,160.42 $ 76,803.75
$ 45,647.44 $ 313,911.41
Variable Overhead per case
5.90
S
6.18
6.10
S
6.34
Direct FC
$ 10,329.62
$ 8,392.91
$
6,017.39
$ 9,893.92
$ 34,633.84
Total Variable Cost per case
12.40 $
12.83
$
12.25
$
15.59
Segment Margin
$ 97,970.18 $ 74,767.51 $ 70,786.36 $ 35,753.52
$ 279,277.57
CM per case
8.60
$
11.67
11.25
10.91
Common FC
$ 245,389.44
Operating Income
$ 33,888.13
Cases Sold last year
12,593
7,126
6,827
4,184
30,730
Taxes (35%)
$ 11,860.85
DLH per case
0.25
0.25
0.20
0.35
Net Income
$ 22,027.28
Total DLH last year
3,148.25
1,781.50
1,365.40
1,464.40
7,759.55
Machine Hours per case
0.20
0.40
0.25
0.30
Total Machine Hours last year
2,518.60
2,850.40
1,706.75
1,255.20
8,330.95
14,320.76
Exhibit 2: Additional Cost Info
Details of Total VC
Details of Total FC (Direct and Indirect)
DM
93,537.20
Brew Master/Quality Control Manager
60,293.15
DL
116,393.25
Receiving and Shipping Department Expenses
22,511.32
Production Supplies
26,064.41
Depreciation
11,712.10
Variable Portion of Maintenance
40,892.55
Facility Costs (rent, taxes, insurance, etc.)
78,938.15
Variable Portion of Utilities
27,610.57
Advertising and Marketing Costs
22,994.91
Variable Office Supplies
3,493.88
Fixed Portion of Maintenance
9,992.98
Shipping Costs
31,619.19
Fixed Portion of Utilities
10,390.37
8% Sales Commission
56,828.04
Fixed Portion of Office Supplies
4,305.66
Total VC
396,439.09
Fixed Salary of Salespeople
32,221.81
Admin. Staff to Assist Owner
26,662.83
Total FC
280,023.28

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