Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales   $4,224,000 Cost of goods sold $1,056,000   Selling, general, and administrative expenses 396,000 1,452,000 Operating income   $2,772,000* *Before special items     In addition, assume that Anheuser-Busch InBev sold 33,000 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 $13,900. 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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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   $4,224,000
Cost of goods sold $1,056,000  
Selling, general, and administrative expenses 396,000 1,452,000
Operating income   $2,772,000*
*Before special items    

In addition, assume that Anheuser-Busch InBev sold 33,000 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 $13,900.

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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