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Break Even Sales Anheusethusch InBev SMNV (BUD) reported the following operating information for a recent year: Sales s5,3?5,ooo Cost of goods sold $1,344,000 Selling, general,
Break Even Sales Anheusethusch InBev SMNV (BUD) reported the following operating information for a recent year: Sales s5,3?5,ooo Cost of goods sold $1,344,000 Selling, general, and administrative expenses 280,000 1,624,000 Operating income $3,?52,000* *Before special items In addition, assume that AnheuserBusch InBeur sold 28,000 barrels of beer during the year. Assume that variable costs were 15% of the cost of goods sold and 50% of selling, general, and administrative expenses. Assume that the remaining costs are xed. For the following year, assume that Anheusethusch InElieur expects pricing, variable costs per barrel, and xed costs to remain constant, except that new distribution and general office facilities are expected to increase xed costs by $14,300. a. Compute the break-even number of barrels for the current year. Round lo the nearest whole barrel. b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. :l barrels
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