Anheuser Busch InBev Companies Inc reported the

following operating information for #6954

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

Sales.............................................$47,063

Cost of goods sold............................$18,756

Selling, general, and administration..........12,999

...................................................$31,755

Income from operations.....................$15,308*

*Before special items

In addition, assume that Anheuser-Busch InBev sold 400 million 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 $300 million.

A. Compute the break-even number of barrels for the current year. (Note: For the selling price
per barrel and variable costs per barrel, round to the nearest cent. Round to one decimal place
in millions of barrels.)

B. Compute the anticipated break-even number of barrels for the following year. (Round to one
decimal place in millions of barrels.)

Anheuser Busch InBev Companies Inc reported the following operating information for

ANSWER
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