Break-even salesAnheuser-Busch InBev Companies, Inc., reported the followingoperating information for a recent year (in millions): Net sales $47,063 Cost of goods sold $18,756 Selling, general and administration 12,999 $31,755 Income from operations $15,308* *Before special items In addition, assume that Anheuser-Busch InBev sold 400 million barrelsof beer during the year. Assume that variable costs were 75% of the costof 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 perbarrel, and Fixed costs to remain constant, except that new distributionand general office facilities are expected to increase fixed costs by $300million. a. Compute the break-even number of barrels for the current year.Note: For the selling price per barrel and variable costs per barrel,round to the nearest cent. Also present the break-even units inmillions of barrelsb. Compute the anticipated break-even number of barrels for thefollowing year.
Break-even sales
Anheuser-Busch InBev Companies, Inc., reported the following
operating information for a recent year (in millions):
| Net sales | $47,063 |
| Cost of goods sold | $18,756 |
| Selling, general and administration | 12,999 |
| $31,755 | |
| Income from operations | $15,308* |
| *Before special items |
In addition, assume that Anheuser-Busch InBev sold 400 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 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 $300
million.
a. Compute the break-even number of barrels for the current year.
Note: For the selling price per barrel and variable costs per barrel,
round to the nearest cent. Also present the break-even units in
millions of barrels
b. Compute the anticipated break-even number of barrels for the
following year.
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