Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: $4,752,000 Sales Cost of goods sold Selling, general, and administrative
Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: $4,752,000 Sales Cost of goods sold Selling, general, and administrative expenses $1,188,000 270,000 1,458,000 $3,294,000 Operating income "Before special items In addition, assume that Anheuser-Busch InBev sold 27,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% selling, general, and administrative 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 $13,000. a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. 7,770 X barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. 55.6 X barrels Feedback
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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