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Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: $9,504,000 Sales Cost of goods sold $2,376,000 Selling, general, and administrative expenses 756,000 Operating income "Before special items 3,132,000 $6,372,000* In addition, assume that Anheuser-Busch InBev sold 54,000 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 $29,200. a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels

Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: $9,504,000 Sales Cost of goods sold $2,376,000 Selling, general, and administrative expenses 756,000 Operating income "Before special items 3,132,000 $6,372,000* In addition, assume that Anheuser-Busch InBev sold 54,000 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 $29,200. a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: $9,504,000 Sales Cost of goods sold $2,376,000 Selling, general, and administrative expenses 756,000 Operating income Before special items ess=false 3,132,000 $6,372,000* a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. barrels E b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels a In addition, assume that Anheuser-Busch InBev sold 54,000 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 $29,200. * πi
Transcribed Image Text:Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: $9,504,000 Sales Cost of goods sold $2,376,000 Selling, general, and administrative expenses 756,000 Operating income Before special items ess=false 3,132,000 $6,372,000* a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. barrels E b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels a In addition, assume that Anheuser-Busch InBev sold 54,000 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 $29,200. * πi
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