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Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions) Sales Cost of goods sold Selling, general and
Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions) Sales Cost of goods sold Selling, general and administration $47,063 $18,756 S15,308* Income from operations 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 perbarrel, 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
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