Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales $11,520,000 Cost of goods sold $2,880,000 Selling, general, and administrative expenses 960,000 3,840,000 Operating income $7,680,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 60,000 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 $36,000. 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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Break-Even Sales
Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year:
Sales
$11,520,000
Cost of goods sold
$2,880,000
Selling, general, and administrative expenses
960,000
3,840,000
Operating income
$7,680,000*
*Before special items
In addition, assume that Anheuser-Busch InBev sold 60,000 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 $36,000.
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
Transcribed Image Text:Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales $11,520,000 Cost of goods sold $2,880,000 Selling, general, and administrative expenses 960,000 3,840,000 Operating income $7,680,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 60,000 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 $36,000. 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
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