Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales $4,640,000 Cost of goods sold $1,160,000 Selling, general, and administrative expenses 522,000 1,682,000 Operating income $2,958,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 29,000 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 $16,500. 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
Break-Even Sales
Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year:
| Sales | $4,640,000 | |
| Cost of goods sold | $1,160,000 | |
| Selling, general, and administrative expenses | 522,000 | 1,682,000 |
| Operating income | $2,958,000* | |
| *Before special items |
In addition, assume that Anheuser-Busch InBev sold 29,000 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 $16,500.
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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