Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: $5,088,000 $1,272,000 530,000 $1,802,000 $ 3,286,000" Sales Cost of goods sold Selling, general and administration Income from operations. *Before special items. In addition, assume that Anheuser-Busch InBev sold 53,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and 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 $17,500. a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. 45,041 X barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels Feedback Check My Work a. Fixed costs divided by the unit contribution margin equals break-even point in units. b. Repeat the calculations in (a) using anticipated amounts.
Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: $5,088,000 $1,272,000 530,000 $1,802,000 $ 3,286,000" Sales Cost of goods sold Selling, general and administration Income from operations. *Before special items. In addition, assume that Anheuser-Busch InBev sold 53,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and 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 $17,500. a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. 45,041 X barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels Feedback Check My Work a. Fixed costs divided by the unit contribution margin equals break-even point in units. b. Repeat the calculations in (a) using anticipated amounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Break-Even Sales
Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year:
$5,088,000
$1,272,000
530,000
$1,802,000
$ 3,286,000*
Sales
Cost of goods sold
Selling, general and administration
Income from operations
*Before special items
In addition, assume that Anheuser-Busch InBev sold 53,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and 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 $17,500.
a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel.
45,041 X barrels
b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel.
barrels
Feedback
Check My Work
a. Fixed costs divided by the unit contribution margin equals break-even point in units.
b. Repeat the calculations in (a) using anticipated amounts.
Learning Objective 3.
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