Reference no: EM133148413

Question - Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year:

Sales $7,744,000

Cost of goods sold $1,936,000

Selling, general and administration 704,000

$2,640,000

Income from operations $ 5,104,000*

*Before special items

In addition, assume that Anheuser-Busch InBev sold 44,000 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 Anheuser-Busch InBev 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 $25,100.

a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel.

b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel.