Break Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year Sales $3,648,000 Cost of goods sold $912,000 Selling, general and administration 608,000 $1,520,000 Income from operations $ 2,128,000 *Before special items In addition, assume that Anheuser Busch InBev sold 38,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and son 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 516,000 a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel 6,786 X barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels Check My W a Fed costs divided by the unit contribution margin equals break even point in units b. Repeat the calculations in (a) using anticipated amounts Learning Objective