1. Break-Even Analysis

The Junior League of Yadkinville, California, collected recipes from members and published a cookbook entitled Food for Everyone. The book will sell for $18 per copy. The chairwoman of the cookbook development committee estimated that the club needed to sell 2,000 books to break even on its $4,000 investment.

What is the variable cost per unit assumed in the Junior League's analysis? $ ____ per unit

2. Break-Even Sales

Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions of dollars):

Net sales	$39,758
Cost of goods sold	$16,447
Selling, general and administration	10,578
	$27,025
Income from operations	$12,733*
*Before special items

In addition, assume that Anheuser-Busch InBev sold 320 million barrels of beer during the year. Assume that variable costs were 70% of the cost of goods sold and 40% 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 $400 million.

When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to the nearest whole barrel.

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

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

Please provide a detailed solution.