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.