4. EX.20.12.ALGO (Algorithmic) Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for...
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4. EX.20.12.ALGO (Algorithmic) Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales $6,768,000 Cost of goods sold $1,692,000 Selling, general, and administrative expenses 470,000 2,162,000 Operating income $4,606,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 47,000 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 $19,700. 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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