Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year (in millions): Sales $45,517 Cost of goods sold $17,803 Selling, general, and...


Break-Even Sales<br>Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year (in millions):<br>Sales<br>$45,517<br>Cost of goods sold<br>$17,803<br>Selling, general, and administrative expenses<br>14,439<br>(32,242)<br>Operating income<br>$13,275*<br>*Before special items<br>In addition, assume that Anheuser-Busch InBev sold 500 million barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling,<br>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,<br>and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $400 million.<br>a. Compute the break-even number of barrels for the current year. In computing variable and fixed costs and per-barrel amounts, round to two decimal places. Round the<br>break-even number of barrels to one decimal place.<br>21,218 million barrels<br>b. Compute the anticipated break-even number of barrels for the following year. Round to one decimal place in millions of barrels.<br>187,120 million barrels<br>

Extracted text: Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year (in millions): Sales $45,517 Cost of goods sold $17,803 Selling, general, and administrative expenses 14,439 (32,242) Operating income $13,275* *Before special items In addition, assume that Anheuser-Busch InBev sold 500 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 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 $400 million. a. Compute the break-even number of barrels for the current year. In computing variable and fixed costs and per-barrel amounts, round to two decimal places. Round the break-even number of barrels to one decimal place. 21,218 million barrels b. Compute the anticipated break-even number of barrels for the following year. Round to one decimal place in millions of barrels. 187,120 million barrels

Jun 02, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions ยป

Submit New Assignment

Copy and Paste Your Assignment Here