Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales $4,992,000 Cost of goods sold $1,248,000 Selling, general and administration 520,000 $1,768,000 Income from operations $ 3,224,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 52,000 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 $17,200. 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
Break-Even Sales
Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year:
| Sales | $4,992,000 |
| Cost of goods sold | $1,248,000 |
| Selling, general and administration | 520,000 |
| $1,768,000 | |
| Income from operations | $ 3,224,000* |
| *Before special items |
In addition, assume that Anheuser-Busch InBev sold 52,000 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 $17,200.
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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