Break$-$Even Sales

Anheuser$-$Busch InBev SA$/$NV $($BUD$)$ reported the following operating information for a recent year $($in millions$)$:

Sales $$45,517$

Cost of goods sold $$17,803$

Selling, general, and administrative expenses $14,439(32,242)$

Operating income $$13,275*$

$*$Before special items

In addition, assume that Anheuser$-$Busch InBev sold $500$ 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 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 $$400$ million.

a$.$ Compute the break$-$even number of barrels for the current year. In computing variable and fixed costs and per$-$barrel amounts, round to two decimal places. Round the break$-$even number of barrels to one decimal place.

fill in the blank $1$

million barrels

b$.$ Compute the anticipated break$-$even number of barrels for the following year. Round to one decimal place in millions of barrels.

fill in the blank $2$

million barrels