Break$-$even sales

Sales

Cost of goods sold

Selling, general, and administrative expenses

Operating income

$*$Before special items

increase fixed costs by $$18\mathrm{.}50$ million.

a$.$ Compute the break$-$even number of barrels for the current year. Round to the nearest thousand of barrels.

$$ thousand barrels

b$.$ Compute the anticipated break$-$even number of barrels for the following year. Round to the nearest thousand of barrels.

X thousand barrels

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a$.$ Fixed costs divided by the unit contribution margin equals break$-$even point in units.

b$.$ Repeat the calculations in $($a$)$ using anticipated amounts.