Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed
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 sering 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.) 3.2 million barrels

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Creative And Innovative Auditing

Authors: Jeffrey Ridley

1st Edition

1472474627, 9781472474629

More Books

Students also viewed these Accounting questions

Question

=+4. What do you think?

Answered: 1 week ago