Sales .. $ 45,517 Cost of goods sold .. Selling, general, and administrative expenses... $17,803 14,439 (32,242) $ 13,275* ..... Operating Income "Before special items.
Anheuser-Busch InBev SA/NV (BUD) reported the following operating
information for a recent year (in millions)
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.
b. Compute the anticipated break-even number of barrels for the
following year. Round to one decimal place in millions of barrels.
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