Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year Sales $4,032,000 Cost of goods sold $1,008,000 Seling, general, and administrative
Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year Sales $4,032,000 Cost of goods sold $1,008,000 Seling, general, and administrative expenses 280,000 1,288,000 Operating income $2,744,000 *Before special items In addition, assume that Anheuser-Busch Inbev sold 28,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50 of selling. general, and administrative expenses. Assume that the remaining costs are fixced. For the following veac assume that AnheuserBusch Inbev expects pricing, variabie costs per barrel, and foxed coists to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $11,800. a. Compute the break-even number of barreis for the current year. Round to the nearest whole barrel. barrels b. Compute the anticipated break-even number of barreis for the following year, Round to the nearest whole barrel. barreis
Step by Step Solution
★★★★★
3.33 Rating (159 Votes )
There are 3 Steps involved in it
Step: 1
a Break even number of units Fixed cost contribution margin Variable cost total 75 of cost o...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started