Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions): In addition,
Question:
Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions):
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. For the selling price per barrel and variable costs per barrel, round to the nearest cent. Also present the break-even units in millions of barrels.
b. Compute the anticipated break-even number of barrels for the following year.
Step by Step Answer:
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider