Question
Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales $5,664,000 Cost of goods sold $1,416,000 Selling, general, and
Break-Even Sales
Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year:
Sales | $5,664,000 | |
Cost of goods sold | $1,416,000 | |
Selling, general, and administrative expenses | 708,000 | 2,124,000 |
Operating income | $3,540,000* | |
*Before special items |
In addition, assume that Anheuser-Busch InBev sold 59,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and administrative 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 $21,200.
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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