Reference no: EM132574765
Break-Even Sales
Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year:
Sales $9,120,000
Cost of goods sold$2,280,000
Selling, general, and administrative expenses570,000
2,850,000
Operating income $6,270,000
Before special items
In addition, assume that Anheuser-Busch InBev sold 57,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and administrative 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 $25,700.
Question a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel.
Question b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel.
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