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

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

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.2.1P

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