Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7. EX.19-12.ALGO (Algorithmic) Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a Sales recent year: $5,472,000 $1,368,000 570,000 $1,938,000 $3,534,000* Cost

image text in transcribed
7. EX.19-12.ALGO (Algorithmic) Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a Sales recent year: $5,472,000 $1,368,000 570,000 $1,938,000 $3,534,000* Cost of goods sold Selling, general and administration Income from operations *Before special items In addition, assume that Anheuser-Busch InBev sold 57,000 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 $18,800. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

E Commerce Operational Aspects Accounting Auditing And Taxation Issues

Authors: Lata Sharma

1st Edition

8177084097, 978-8177084092

More Books

Students also viewed these Accounting questions