### Break-Even Sales #### Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: - **Sales**: $10,176,000 - **Cost of goods sold**: $2,544,000 - **Selling, general, and administrative expenses**: $954,000 - **Operating income**: $6,678,000 *Before special items Additionally, Anheuser-Busch InBev sold 53,000 barrels of beer during the year. Assumptions: - Variable costs were 75% of the cost of goods sold and 50% of selling, general, and administrative expenses. - The remaining costs are fixed. - For the following year, pricing, variable costs per barrel, and fixed costs are expected to remain constant, except new distribution and general office facilities are anticipated to increase fixed costs by $33,400. ### Tasks: a. **Compute the break-even number of barrels for the current year.** - Round to the nearest whole barrel. b. **Compute the anticipated break-even number of barrels for the following year.** - Round to the nearest whole barrel. ### Instructions: - Use the provided financial data and assumptions to calculate the break-even points. - Ensure calculations are rounded to the nearest whole barrel for accuracy.
### Break-Even Sales #### Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: - **Sales**: $10,176,000 - **Cost of goods sold**: $2,544,000 - **Selling, general, and administrative expenses**: $954,000 - **Operating income**: $6,678,000 *Before special items Additionally, Anheuser-Busch InBev sold 53,000 barrels of beer during the year. Assumptions: - Variable costs were 75% of the cost of goods sold and 50% of selling, general, and administrative expenses. - The remaining costs are fixed. - For the following year, pricing, variable costs per barrel, and fixed costs are expected to remain constant, except new distribution and general office facilities are anticipated to increase fixed costs by $33,400. ### Tasks: a. **Compute the break-even number of barrels for the current year.** - Round to the nearest whole barrel. b. **Compute the anticipated break-even number of barrels for the following year.** - Round to the nearest whole barrel. ### Instructions: - Use the provided financial data and assumptions to calculate the break-even points. - Ensure calculations are rounded to the nearest whole barrel for accuracy.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:### Break-Even Sales
#### Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year:
- **Sales**: $10,176,000
- **Cost of goods sold**: $2,544,000
- **Selling, general, and administrative expenses**: $954,000
- **Operating income**: $6,678,000
*Before special items
Additionally, Anheuser-Busch InBev sold 53,000 barrels of beer during the year.
Assumptions:
- Variable costs were 75% of the cost of goods sold and 50% of selling, general, and administrative expenses.
- The remaining costs are fixed.
- For the following year, pricing, variable costs per barrel, and fixed costs are expected to remain constant, except new distribution and general office facilities are anticipated to increase fixed costs by $33,400.
### Tasks:
a. **Compute the break-even number of barrels for the current year.**
- Round to the nearest whole barrel.
b. **Compute the anticipated break-even number of barrels for the following year.**
- Round to the nearest whole barrel.
### Instructions:
- Use the provided financial data and assumptions to calculate the break-even points.
- Ensure calculations are rounded to the nearest whole barrel for accuracy.
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