Question

Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales $6,560,000 Cost of goods sold $1,640,000 Selling, general, and administrative expenses 656,000 2,296,000 Operating income $4,264,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 41,000 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 $22,100. 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

Answer 1