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Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions): $54,619 $20,360 16,438 $36,798 $17,821* Sales Cost of
Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions): $54,619 $20,360 16,438 $36,798 $17,821* Sales Cost of goods sold Selling, general, and administrative expenses 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 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. When computing the cost per unit amounts for the break-even formula, round to two decimal places. a. Compute the break-even number of barrels for the current year. Also present the break-even units in millions of barrels. (Round your final answer to the nearest whole number.) million barrels b. Compute the anticipated break-even number of barrels for the following year. (Round your final answer to the nearest whole number.) million barrels
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