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

Section: Chapter Questions

Problem 1Q

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Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales $11,136,000 Cost of goods sold $2,784,000 Selling, general and administration 1,044,000 $3,828,000 Income from operations $ 7,308,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 58,000 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 $36,500. a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel.fill in the blank 1 barrels b. Compute the anticipated break-even number of barrels for the following year. Round to…
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