Break-Even Sales
Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year:
Sales
Cost of goods sold
Selling, general, and administrative expenses
Operating income
Before special items
$2,496,000
936,000
$9,984,000
3,432,000
$6,552,000*
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 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 $32,800.
a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel.
<
X barrels
b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel.
barrels
S