Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions):
- Net sales: $23, 507
- Cost of good sold: $10,336
- Selling,general and administration: $ 7,831
- $18,167
Income from operations $ 5,340 (before special items)
In additions, assume that Anheuser-Busch InBev sold 200 million barrels of beer during the year. Assume that variable costs were 75% of the cost of good sold and 40% of selling, general and administration expenses. Assume that the remaining cost are fixed. For the following year, asumme that Anheuser-Busch in Bev expect pricing, variable costs per barrel, and fixed costs to remain constant, expect that new distribution and general office facilities are expected to increase fixed costs by $ 225 million.
a) Compute the break-even number of barrels for the current year. note: for the selling price per barrel and variable costs per barrrel, round to the nearest cent. Also, round the break-even to the nearest barrel.