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Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales $8,320,000 Cost of goods sold $2,080,000 Selling, general and
Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales $8,320,000 Cost of goods sold $2,080,000 Selling, general and administration 1,170,000 $3,250,000 Income from operations $ 5,070,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 65,000 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 $33,200. a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels
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