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

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

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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