Break-even sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales $7,520,000 Cost of goods sold $1,880,000 Sales, general and administration 470,000 $2,350,000 Income from operations $5,170,000* *Before special items Also, 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 prices, variable costs per barrel, and fixed costs to remain constant, except that the new distribution and headquarters facilities are expected to increase fixed costs by $21,200. 

Required:

a. Calculate the breakeven number of barrels for the current year. Round to the nearest whole barrel. barrels 

b. Calculate the anticipated equilibrium number of barrels for the following year. Round to the nearest whole barrel.

Answer rating: 100% (QA)

a To calculate the breakeven number of barrels for the current year we need to first determine the c... View the full answer