Break-Even SalesAnheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year:Sales$8,640,000Cost of goods sold$2,160,000Selling, general, and administrative expenses810,000 2,970,000Operating income$5,670,000**Before special itemsIn addition, assume that Anheuser-Busch InBev sold 45,000 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 expectspricing, 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$28,400.a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel.X barrelsb. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel.X barrels

The objective of this question is to calculate the break-even number of barrels for the current year…

Answered: Break-Even Sales Anheuser-Busch InBev…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $580,000 Sales 567,930 Purchases 294,832 Ending Inventory* 10% Administrative Salaries 50,280 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,700 Depreciation Expense 1,200 Utilities 2,500 Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the nearest dollar. Italian Exports, Inc.Budgeted Income StatementFor the Month Ending Mar. 31, 2020 $Sales Cost of Goods Sold $Beginning Inventory Purchases $Cost of Goods Available for Sale Ending Inventory $Cost of Goods Sold Gross Profit Operating Expenses $Administrative Salaries Marketing Expenses Sales Commissions Rent Expense Depreciation Expense Utilities Total…
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Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: $5,952,000 $1,488,000 372,000 $1,860,000 $ 4,092,000* Sales Cost of goods sold Selling, general and administration Income from operations *Before special items In addition, assume that Anheuser-Busch InBev sold 31,000 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 $16,700. 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…
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Differential Analysis for a Discontinued Product A condensed income statement by product line for Warrick Beverage Inc. indicated the following for Mango Cola for the past year: Sales $15,000,000 Cost of goods sold (10,800,000) Gross profit $4,200,000 Operating expenses (8,000,000) >) Operating loss $(3,800,000) It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 25% of the operating expenses are fixed. Because Mango Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. a. Prepare a differential analysis dated February 29 to determine whether Mango Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mango Cola February 29 Continue Discontinue Differential Mango Cola Effects Mango Cola (Alternative 1) (Alternative…
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