Answer

Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions): Sales $54,619 Cost of goods sold $20,360 Selling, general, and administrative expenses 16,438 $36,798 Income from operations $17,821* *Before special items In addition, assume that Anheuser-Busch InBev sold 400 million 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 $300 million. When computing the cost per unit amounts for the break-even formula, round to two decimal places. a. Compute the break-even number of barrels for the current year. Also present the break-even units in millions of barrels. (Round your final answer to the nearest whole number.) million barrels b. Compute the anticipated break-even number of barrels for the following year. (Round your final answer to the nearest whole number.) million barrels