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Business, 07.03.2020 02:33 vasquez8518

Break-Even Sales

Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions of dollars):

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.

When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place.

a. Compute the break-even number of barrels for the current year.
million barrels

b. Compute the anticipated break-even number of barrels for the following year.
million barrels

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Break-Even Sales

Anheuser-Busch InBev Companies, Inc., reported the following operating...
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