Question
Anheiser-Busch InBev Companies, Inc. reported the following operating information for a recent year (in millions). Sales 39,758 Cost of Goods Sold 16447 Selling, general and
Anheiser-Busch InBev Companies, Inc. reported the following operating information for a recent year (in millions). Sales 39,758 Cost of Goods Sold 16447 Selling, general and administration 10578 27025 (16447+10578) Income from Operations 12733* *Before special items In addition, assume Anheuser InBev soled 320 million barrels of beer during the year. Assume that the variable costs were 70% of the cost of goods sold and 40% of selling, general, and admission expenses. Assume the remaining costs are fixed. For the following year, assume Anheuser-Busch InBev expects pricing, variable costs per barrel and fixed costs to remain a constant, except that new distribution and general office facilities are expected to increase fixed costs by $400 million. a. Compute the break-even number of barrels for the current year. NOTE: For the selling price per barrel and variable cost per barrel, round to the nearest cent. Also, round the break-even to the nearest barrel b. Compute the anticipated break-even number of barrels for the following year.
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