Reference no: EM133034879

Problem - Break-Even Sales - Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year:

Sales	$8,096,000
Cost of goods sold	$2,024,000
Selling, general and administration	644,000
	$2,668,000
Income from operations	$5,428,000*
*Before special items

In addition, assume that Anheuser-Busch InBev sold 46,000 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 $24,800.

Required -

Q1. Compute the break-even number of barrels for the current year.

Q2. Compute the anticipated break-even number of barrels for the following year.