Question
Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales$3,248,000Cost of goods sold$812,000Selling, general, and administrative expenses406,0001,218,000Operating income$2,030,000**Before special
Break-Even Sales
Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year:
Sales$3,248,000Cost of goods sold$812,000Selling, general, and administrative expenses406,0001,218,000Operating income$2,030,000**Before special items
In addition, assume that Anheuser-Busch InBev sold 29,000 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 $12,200.
a.Compute the break-even number of barrels for the current year.Round to the nearest whole barrel.
fill in the blank 1
____________barrels
b.Compute the anticipated break-even number of barrels for the following year.Round to the nearest whole barrel.
fill in the blank 2
____________barrels
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