Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions): Sales $47,063 Cost of goods sold $18,756 Selling, general and administration 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 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. (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.) million barrels b. Compute the anticipated break-even number of barrels for the following year (Round to one decimal place in millions of barrels.) million barrels Ted Check My Work Previous Next Mcdonalds eBook Show Me How Print Item Break-Even Sales and Sales to Realize Income from Operations For the current year ended October 31, Friedman Company expects fixed costs of $489,600, a unit variable cost of $50, and a unit selling price of $74. a. Compute the anticipated break-even sales (units), units b. Compute the sales (units) required to realize income from operations of $112,800 units Tebek Check My Work Previous Next eBook Show Me How Print Item Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millons); Sales $35,900 Food and packaging $10,001 Payroll 9,100 Occupancy (rent, depreciation, etc.) 10,519 General, selling, and administrative expenses 5,200 $34,820 Loc Income from operations $1,080 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) million b. What is McDonald's contribution margin ratio? c. How much would income from operations increase if same-store sales increased by $2,200 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest milion million Check My Work Previous Next > Break-Even Sales Currently, the unit selling price of a product is $310, the unit variable cost is $250, and the total fixed costs are $810,000. A proposal is being evaluated to increase the unit selling price to $340. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units Check My Work Check My Work Previous Next >
