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 barrel, barrels

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 barrel, 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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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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