Dont give me wrong answer please if you cant help me let someone else help me. t

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Dont give me wrong answer please if you cant help me let someone else help me. thank you

Break-Even Sales

Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year:

In addition, assume that Anheuser-Busch InBev sold 56,000 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 $30,200.

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

Sales $9,856,000 Cost of goods sold $2,464,000 Selling, general and administration 784,000 $3,248,000 Income from operations $ 6,608,000* *Before special items

Explanation / Answer

Selling price per barrel = 9856000/56000= $176 Variable Cost of goods sold per barrel=(2464000*75%)/56000= $33 Variable selling general and administration per barrel=(784000*50%)/56000= $7 Fixed costs=(2464000*25%)+(784000*50%)= $1008000 a Break-even number of barrels=1008000/(176-33-7)= 7412 b Break-even number of barrels=(1008000+30200)/(176-33-7)= 7634

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