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982 Chapter 19 Cost-Volume-Profit Analysis A. 168.9 million barrels EX 19-12 Break-even sales Obj. 3 Anheuser-Busch InBev Companies, Inc., reported the following operating information for
982 Chapter 19 Cost-Volume-Profit Analysis A. 168.9 million barrels EX 19-12 Break-even sales Obj. 3 Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions): Sales REAL WORLD Cost of goods sold $47.063 Selling general, and administration $18,756 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 dur- ing 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.)
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