0-14 eBook 04 Show Me How 04.ALGO 11 11.ALGO 12 12.ALGO 13 Break-Even Sales Currently, the unit selling price of a product is $230, the unit variable cost is $190, and the total fixed costs are $476,000. A proposal is being evaluated to increase the unit selling price to $260. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant units 13.ALGO 03A 6.03A ALGO 06.02 06.03 0-14 eBook .04 04 ALGO 11 11 ALGO 12 Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales $9,072,000 Cost of goods sold i $2,268,000 Selling, general, and administrative expenses 1,134,000 3,402,000 Operating income $5,670,000* Before special items 12.ALGO 13 13.ALGO 03A 6.03A ALGO 06.02 06.03 In addition, assume that Anheuser-Busch InBev sold 63,000 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 $34,000. a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels