Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: $3,168,000 $792,000 594,000 Sales Cost of goods sold Selling, general and administration Income from operations *Before special items $1,386,000 $ 1,782,000* 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 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 $14,900. 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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Anheseur-busch Inbev Inc reported the following operating information for a recent year
Break-Even Sales
Anheuser-Busch InBev Companies, Inc., reported the
following operating information for a recent year:
Sales
Cost of goods sold
Selling, general and administration
Income from operations
*Before special items
$3,168,000
$792,000
594,000
$1,386,000
$ 1,782,000*
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 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 $14,900.
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 Companies, Inc., reported the following operating information for a recent year: Sales Cost of goods sold Selling, general and administration Income from operations *Before special items $3,168,000 $792,000 594,000 $1,386,000 $ 1,782,000* 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 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 $14,900. 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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