Break-Even Sales

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

Sales$6,240,000Cost of goods sold$1,560,000Selling, general, and administrative expenses1,170,0002,730,000Operating income$3,510,000**Before special items

In addition, assume that Anheuser-Busch InBev sold 65,000 barrels of beer during the year. Assume thatvariable costswere 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, andfixed coststo remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $29,300.

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